UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________

FORM 10-Q

___________________________________________________

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2021~~March 31, 2022

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-16247

___________________________________________________

Coronado Global Resources Inc.

(Exact name of registrant as specified in its charter)

___________________________________________________

Delaware

83-1780608

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

Level 33, Central Plaza One, 345 Queen Street

Brisbane, Queensland, Australia 4000

(Address of principal executive offices) (Zip Code)

(61) 7 3031 7777

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

___________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		None		None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No☒

The registrant’s common stock is publicly traded on the Australian Securities Exchange in the form of CHESS Depositary Interests, or CDIs, convertible at the option of the holders into shares of the registrant’s common stock on a 10-for-1 basis. The total number of shares of the registrant's common stock, par value $0.01 per share, outstanding on ~~October 31, 2021,~~April 30, 2022, including shares of common stock underlying CDIs, ~~was167,645,373 .~~was 167,645,373.

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION
Item 1. Financial statements
Condensed Consolidated Balance Sheets as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021	2
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~	3
Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~	4
Unaudited Condensed Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~	65
Notes to Unaudited Condensed Consolidated Financial Statements	76
Report of Independent Registered Public Accounting Firm	2115
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	2216
Item 3. Quantitative and Qualitative Disclosures About Market Risk	4331
Item 4. Controls and Procedures	4533
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	4634
Item 1A. Risk Factors	4634
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	4634
Item 3. Defaults Upon Senior Securities	4634
Item 4. Mine Safety Disclosures	4634
Item 5. Other Information	4634
Item 6. Exhibits	4735
SIGNATURES	4836

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets

(In US$ thousands, except share data)

Assets		Note	(Unaudited) September 30, 2021		December 31, 2020			Note	(Unaudited) March 31, 2022		December 31, 2021
Current assets:
Cash and restricted cash			$	195,979	$	45,736			$	571,467	$	437,931
Trade receivables		6		245,427		175,206
Related party trade receivables		6		0		81,970
Income tax receivable				7,327		20,325
Trade receivables, net										498,963		271,923
Inventories		8		120,149		110,135		4		132,759		118,922
Other current assets				39,307		44,006				50,727		47,647
Assets held for sale				49,929		52,524				27,019		27,023
Total current assets				658,118		529,902				1,280,935		903,446
Non-current assets:
Property, plant and equipment, net		9		1,409,886		1,521,508		5		1,425,579		1,397,363
Right of use asset – operating leases, net				15,475		19,498				10,304		13,656
Goodwill				28,008		28,008				28,008		28,008
Intangible assets, net				4,064		4,217				3,463		3,514
Restricted deposits				77,182		8,425		14		84,810		80,981
Deferred income tax assets				0		24,654				0		14,716
Other non-current assets				9,173		12,264				19,256		19,728
Total assets			$	2,201,906	$	2,148,476			$	2,852,355	$	2,461,412
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	88,190	$	74,651			$	58,241	$	97,514
Accrued expenses and other current liabilities		10		238,344		234,526		6		332,959		270,942
Dividends payable								7		151,758		0
Income tax payable										88,614		25,612
Asset retirement obligations				6,785		6,012				9,597		9,414
Contract obligations				39,185		40,295				38,769		39,961
Lease liabilities				8,738		8,414				8,505		8,452
Other current financial liabilities				13,031		7,129				5,482		8,508
Liabilities held for sale				16,036		16,719				11,934		12,113
Total current liabilities				410,309		387,746				705,859		472,516
Non-current liabilities:
Asset retirement obligations				115,434		116,132				114,366		110,863
Contract obligations				149,296		185,823				138,364		141,188
Deferred consideration liability				221,960		216,513				244,943		230,492
Interest bearing liabilities		11		332,817		327,625		8		300,275		300,169
Other financial liabilities				14,741		0				13,176		13,822
Lease liabilities				14,972		20,582				10,836		12,894
Deferred income tax liabilities				36,495		64,366				82,757		75,750
Other non-current liabilities				28,613		22,826				28,918		26,216
Total liabilities				1,324,637		1,341,613			$	1,639,494	$	1,383,910
Common stock $0.01 par value; 1,000,000,000 shares authorized, 167,645,373 shares issued and outstanding as of September 30, 2021 and 138,387,890 shares issued and outstanding as of December 31, 2020				1,677		1,384
Series A Preferred stock $0.01 par value; 100,000,000 shares authorized, 1 Share issued and outstanding as of September 30, 2021 and December 31, 2020				0		0
Total Coronado Group LLC members’ capital
Common stock $0.01 par value; 1,000,000,000 shares authorized,167,645,373 shares issued and outstanding as of March 31, 2022 and December 31, 2021										1,677		1,677
Series A Preferred stock $0.01 par value; 100,000,000 shares authorized, 1 Share issued and outstanding as of March 31, 2022 and December 31, 2021										0		0
Additional paid-in capital				1,090,135		993,052				1,089,631		1,089,547
Accumulated other comprehensive losses		16		(41,557)		(28,806)		12		(27,970)		(44,228)
Accumulated losses				(172,986)		(158,919)
Coronado Global Resources Inc. stockholders’ equity				877,269		806,711
Noncontrolling interest				0		152
Retained earnings										149,523		30,506
Total stockholders’ equity				877,269		806,863				1,212,861		1,077,502
Total liabilities and stockholders’ equity			$	2,201,906	$	2,148,476			$	2,852,355	$	2,461,412

See accompanying notes to unaudited condensed consolidated financial statements.	See accompanying notes to unaudited condensed consolidated financial statements.						See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20222

Table of Contents

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income
(In US$ thousands, except share data)

			Three months ended September 30,				Nine months ended September 30,						Three months ended March 31,
		Note	2021		2020		2021		2020			Note	2022		2021
Revenues:
Coal revenues		3	$	563,287	$	349,686	$	1,246,918	$	955,385			$	936,628	$	299,161
Coal revenues from related parties		3, 6		0		17,051		97,335		106,169				0		68,041
Other revenues		3		10,304		9,648		29,705		28,497				10,497		8,909
Total revenues				573,591		376,385		1,373,958		1,090,051		3		947,125		376,111
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)				309,513		263,858		889,771		745,203				357,500		274,103
Depreciation, depletion and amortization				38,461		48,693		132,754		135,542				38,009		53,081
Freight expenses				58,043		50,590		166,090		133,475				59,264		52,141
Stanwell rebate				12,274		25,157		43,169		82,571				29,053		15,819
Other royalties				39,099		21,697		83,219		65,151				83,032		20,947
Selling, general, and administrative expenses				8,044		6,785		21,250		20,138				7,876		5,775
Restructuring costs				0		0		2,300		0
Total costs and expenses				465,434		416,780		1,338,553		1,182,080				574,734		421,866
Operating income (loss)				108,157		(40,395)		35,405		(92,029)
Other income (expense):
Other (expense) income:
Interest expense, net				(18,251)		(12,207)		(49,982)		(36,528)				(17,332)		(15,135)
Loss on debt extinguishment				0		0		(5,744)		0
Impairment of assets				0		0		0		(63,111)
Decrease in provision for discounting and credit losses				2,430		0		8,074		0
(Increase) decrease in provision for discounting and credit losses														(428)		3,778
Other, net		4		(1,252)		(361)		(3,610)		(4,846)				(2,790)		(2,928)
Total other expense, net				(17,073)		(12,568)		(51,262)		(104,485)				(20,550)		(14,285)
Income (loss) before tax				91,084		(52,963)		(15,857)		(196,514)				351,841		(60,040)
Income tax (expense) benefit		13		(9,096)		11,169		1,788		31,525		9		(81,943)		19,068
Net income (loss)				81,988		(41,794)		(14,069)		(164,989)				269,898		(40,972)
Less: Net loss attributable to noncontrolling interest				0		(2)		(2)		(6)				0		(2)
Net income (loss) attributable to Coronado Global Resources Inc.			$	81,988	$	(41,792)	$	(14,067)	$	(164,983)			$	269,898	$	(40,970)
Other comprehensive income, net of income taxes:
Foreign currency translation adjustment		16		(7,966)		14,867		(16,796)		461		12		16,258		(4,609)
Net (loss) gain on cash flow hedges, net of tax		16		(2,204)		3,027		4,045		(11,619)
Total other comprehensive income (loss)				(10,170)		17,894		(12,751)		(11,158)
Net gain on cash flow hedges, net of tax														0		4,926
Total other comprehensive income														16,258		317
Total comprehensive income (loss)				71,818		(23,900)		(26,820)		(176,147)				286,156		(40,655)
Less: Net loss attributable to noncontrolling interest				0		(2)		(2)		(6)				0		(2)
Total comprehensive income (loss) attributable to Coronado Global Resources Inc.			$	71,818	$	(23,898)	$	(26,818)	$	(176,141)			$	286,156	$	(40,653)

Earnings (loss) per share of common stock
Basic		14		0.49		(0.37)		(0.09)		(1.62)		10		1.61		(0.30)
Diluted		14		0.49		(0.37)		(0.09)		(1.62)		10		1.61		(0.30)

See accompanying notes to unaudited condensed consolidated financial statements.	See accompanying notes to unaudited condensed consolidated financial statements.										See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20223

Table of Contents

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

(In US$ thousands, except share data)

Common stock

Preferred stock

Additional

Accumulated other

Total

paid in

comprehensive

(Accumulated

Noncontrolling

stockholders

Shares

Amount

Series A

Amount

capital

losses

losses)

interest

equity
Balance December 31, 2020

138,387,890
$
1,384

1
$
—
$
993,052
$
(28,806)
$
(158,919)
$
152
$
806,863
Net loss

—

—

—

—

—

—

(40,970)

(2)

(40,972)
Other comprehensive income (net of $2,111 tax)

—

—

—

—

—

317

—

—

317
Total comprehensive income (loss)

—

—

—

—

—

317

(40,970)

(2)

(40,655)
Share-based compensation for equity classified awards

—

—

—

—

(538)

—

—

—

(538)
Acquisition of noncontrolling interest

—

—

—

—

(703)

—

—

(150)

(853)
Balance March 31, 2021

138,387,890
$
1,384

1
$
—
$
991,811
$
(28,489)
$
(199,889)
$
0
$
764,817
Net loss

—

—

—

—

—

—

(55,085)

—

(55,085)
Other comprehensive loss (net of $24 tax)

—

—

—

—

—

(2,898)

—

—

(2,898)
Total comprehensive loss

—

—

—

—

—

(2,898)

(55,085)

—

(57,983)
Issuance of common stock, net

29,257,483

293

—

—

97,448

—

—

—

97,741
Share-based compensation for equity classified awards

—

—

—

—

737

—

—

—

737
Balance June 30, 2021

167,645,373
$
1,677

1
$
—
$
1,089,996
$
(31,387)
$
(254,974)
$
0
$
805,312
Net income

—

—

—

—

—

—

81,988

—

81,988
Other comprehensive loss (net of tax)

—

—

—

—

—

(10,170)

—

—

(10,170)
Total comprehensive (loss) income

—

—

—

—

—

(10,170)

81,988

—

71,818
Share-based compensation for equity classified awards

—

—

—

—

139

—

—

—

139
Balance September 30, 2021

167,645,373
$
1,677

1
$
—
$
1,090,135
$
(41,557)
$
(172,986)
$
—
$
877,269

	Common stock			Preferred stock				Additional		Accumulated other						Total
								paid in		comprehensive		Retained		Noncontrolling		stockholders
	Shares		Amount	Series A		Amount		capital		losses		earnings		interest		equity
Balance December 31, 2021	167,645,373	$	1,677	1	$	0	$	1,089,547	$	(44,228)	$	30,506	$	0	$	1,077,502
Net income	—		0	—		0		0		0		269,898		0		269,898
Other comprehensive income	—		0	—		0		0		16,258		0		0		16,258
Total comprehensive income	—		0	—		0		0		16,258		269,898		0		286,156
Share-based compensation for equity classified awards	—		0	—		0		84		0		0		0		84
Dividends declared	—		0	—		0		0		0		(150,881)		0		(150,881)
Balance March 31, 2022	167,645,373	$	1,677	1	$	0	$	1,089,631	$	(27,970)	$	149,523	$	0	$	1,212,861

	Common stock			Preferred stock				Additional		Accumulated other						Total
								paid in		comprehensive		(Accumulated		Noncontrolling		stockholders
	Shares		Amount	Series A		Amount		capital		losses		losses)		interest		equity
Balance December 31, 2020	138,387,890	$	1,384	1	$	0	$	993,052	$	(28,806)	$	(158,919)	$	152	$	806,863
Net loss	—		0	—		0		0		0		(40,970)		(2)		(40,972)
Other comprehensive income (net of $2,111 tax)	—		0	—		0		0		317		0		0		317
Total comprehensive income (loss)	—		0	—		0		0		317		(40,970)		(2)		(40,655)
Share-based compensation for equity classified awards	—		0	—		0		(538)		0		0		0		(538)
Acquisition of non controlling interest	—		0	—		0		(703)		0		0		(150)		(853)
Balance March 31, 2021	138,387,890	$	1,384	1	$	0	$	991,811	$	(28,489)	$	(199,889)	$	0	$	764,817

See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20224

Table of Contents

Common stock

Preferred stock

Additional

Accumulated other

(Accumulated losses)

Total

paid in

comprehensive

Retained

Noncontrolling

stockholders

Shares

Amount

Series A

Amount

capital

losses

earnings

interest

equity
Balance December 31, 2019

96,651,692
$
967

1
$
—
$
820,247
$
(45,206)
$
91,712
$
221
$
867,941
Net loss

—

—

—

—

—

—

(8,863)

(2)

(8,865)
Other comprehensive loss (net of $13,781 tax)

—

—

—

—

—

(87,759)

—

—

(87,759)
Total comprehensive loss

—

—

—

—

—

(87,759)

(8,863)

(2)

(96,624)
Share-based compensation for equity classified awards

—

—

—

—

148

—

—

—

148
Dividends paid

—

—

—

—

—

—

(24,163)

—

(24,163)
Balance March 31, 2020

96,651,692
$
967

1
$
—
$
820,395
$
(132,965)
$
58,686
$
219
$
747,302
Net loss

—

—

—

—

—

—

(114,328)

(2)

(114,330)
Other comprehensive income (net of $6,534 tax)

—

—

—

—

—

58,707

—

—

58,707
Total comprehensive income (loss)

—

—

—

—

—

58,707

(114,328)

(2)

(55,623)
Share-based compensation for equity classified awards

—

—

—

—

248

—

—

—

248
Balance June 30, 2020

96,651,692
$
967

1
$
—
$
820,643
$
(74,258)
$
(55,642)
$
217
$
691,927
Net loss

—

—

—

—

—

—

(41,792)

(2)

(41,794)
Other comprehensive income (net of $1,107 tax)

—

—

—

—

—

17,894

—

—

17,894
Total comprehensive income (loss)

—

—

—

—

—

17,894

(41,792)

(2)

(23,900)
Issuance of common stock, net

41,736,198

417

—

—

171,168

—

—

—

171,585
Share-based compensation for equity classified awards

—

—

—

—

264

—

—

—

264
Balance September 30, 2020

138,387,890
$
1,384

1
$
—
$
992,075
$
(56,364)
$
(97,434)
$
215
$
839,876

See accompanying notes to unaudited condensed consolidated financial statements.

Unaudited Condensed Consolidated Statements of Cash Flows
(In US$ thousands)

	Three months ended
	March 31,
	2022		2021
Cash flows from operating activities:
Net income (loss)	$	269,898	$	(40,972)
Adjustments to reconcile net income to cash and restricted cash provided by operating activities:
Depreciation, depletion and amortization		38,009		53,081
Amortization of right of use asset - operating leases		3,401		2,246
Amortization of deferred financing costs		484		1,379
Non-cash interest expense		7,689		6,647
Amortization of contract obligations		(8,670)		(8,509)
Loss on disposal of property, plant and equipment		228		101
Equity-based compensation expense		84		(555)
Deferred income taxes		19,027		(18,437)
Reclamation of asset retirement obligations		(1,156)		(557)
Increase (decrease) in provision for discounting and credit losses		428		(3,778)
Changes in operating assets and liabilities:
Accounts receivable - including related party receivables		(226,983)		59,690
Inventories		(10,574)		(4,701)
Other current assets		3,160		2,255
Accounts payable		(34,488)		(19,849)
Accrued expenses and other current liabilities		54,967		(26,790)
Operating lease liabilities		(2,086)		(2,758)
Change in other liabilities		58,431		6,746
Net cash provided by operating activities		171,849		5,239
Cash flows from investing activities:
Capital expenditures		(37,768)		(28,604)
Purchase of restricted deposits		(3,548)		(4,550)
Redemption of restricted deposits		140		250
Net cash used in investing activities		(41,176)		(32,904)
Cash flows from financing activities:
Proceeds from interest bearing liabilities and other financial liabilities		0		53,489
Debt issuance costs and other financing costs		0		(1,266)
Principal payments on interest bearing liabilities and other financial liabilities		(4,773)		(38,110)
Principal payments on finance lease obligations		(21)		0
Premiums paid on early redemption of debt		(22)		0
Net cash (used in) provided by financing activities		(4,816)		14,113
Net increase (decrease) in cash and restricted cash		125,857		(13,552)
Effect of exchange rate changes on cash and restricted cash		7,679		1,516
Cash and restricted cash at beginning of period		437,931		45,736
Cash and restricted cash at end of period	$	571,467	$	33,700
Supplemental disclosure of cash flow information:
Cash payments for interest	$	677	$	7,111
Restricted cash	$	251	$	251
See accompanying notes to unaudited condensed consolidated financial statements.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20225

Table of Contents

~~Unaudited Condensed Consolidated Statements of Cash Flows~~
~~(In US$ thousands)~~

Nine months ended

September 30,

2021

2020
Cash flows from operating activities:

Net loss

$
(14,069)

$
(164,989)
Adjustments to reconcile net income to cash and restricted cash provided by operating activities:

Depreciation, depletion and amortization

132,754

135,542
Impairment of assets

0

63,111
Amortization of right of use asset - operating leases

6,694

11,092
Amortization of deferred financing costs

2,649

4,134
Loss on debt extinguishment

5,744

—
Non-cash interest expense

21,431

16,180
Amortization of contract obligations

(25,612)

(23,575)
Loss on disposal of property, plant and equipment

835

62
Decrease in contingent royalty consideration

0

(1,543)
Gain on operating lease derecognition

0

(1,180)
Equity-based compensation expense

338

660
Deferred income taxes

2,189

(13,554)
Reclamation of asset retirement obligations

(2,393)

(2,324)
Decrease in provision for discounting and credit losses

(8,074)

0
Changes in operating assets and liabilities:

Accounts receivable - including related party receivables

9,783

(63,645)
Inventories

(12,889)

35,719
Other current assets

12,187

(2,912)
Accounts payable

22,899

(24,541)
Accrued expenses and other current liabilities

16,363

8,859
Operating lease liabilities

(7,875)

(12,607)
Change in other liabilities

8,161

(2,584)
Net cash provided by (used in) operating activities

171,115

(38,095)
Cash flows from investing activities:

Capital expenditures

(75,897)

(85,237)
Purchase of restricted deposits

(100,166)

(52)
Redemption of restricted deposits

30,281

6,026
Net cash used in investing activities

(145,782)

(79,263)
Cash flows from financing activities:

Proceeds from interest bearing liabilities and other financial liabilities

411,524

176,953
Debt issuance costs and other financing costs

(15,263)

(2,955)
Principal payments on interest bearing liabilities and other financial liabilities

(371,379)

(216,828)
Principal payments on finance lease obligations

0

(2,387)
Dividends paid

0

(24,162)
Proceeds from stock issuance, net

97,741

171,585
Net cash provided by financing activities

122,623

102,206
Net increase (decrease) in cash and restricted cash

��
147,956

(15,152)
Effect of exchange rate changes on cash and restricted cash

2,287

3,258
Cash and restricted cash at beginning of period

45,736

26,553
Cash and restricted cash at end of period

$
195,979

$
14,659
Supplemental disclosure of cash flow information:

Cash payments for interest

$
13,681

$
17,246
Cash refund for taxes

$
(16,130)

$
(6,431)
Restricted cash

$
251

$
251
See accompanying notes to unaudited condensed consolidated financial statements.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~6

~~Table of Contents~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Description of Business, Basis of Presentation

(a) Description of the Business

Coronado Global Resources Inc. 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.

(b) Basis of Presentation

The interim unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of U.S. generally accepted accounting principles, or U.S. GAAP, and with the instructions to Form 10-Q and Article 10 of Regulation S-X related to interim financial reporting issued by the Securities and Exchange Commission, or the SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC and the Australian Securities Exchange, or the ASX, on February ~~25, 2021.~~22, 2022.

The interim unaudited condensed consolidated financial statements are presented in U.S. dollars, unless otherwise stated. They include the accounts of Coronado Global Resources Inc., its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. References to “US$” or “USD” are references to U.S. dollars. References to “A$” or “AUD” are references to Australian dollars, the lawful currency of the Commonwealth of Australia. The “Company” and “Coronado” are used interchangeably to refer to Coronado Global Resources Inc. and its subsidiaries, collectively, or to Coronado Global Resources Inc., as appropriate to the context. Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests. All intercompany balances and transactions have been eliminated upon consolidation.

In the opinion of management, these interim financial statements reflect all normal, recurring adjustments necessary for the fair presentation of the Company’s financial position, results of operations, comprehensive income, cash flows and changes in equity for the periods presented. Balance sheet information presented herein as of December 31, ~~2020~~2021 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results of operations for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, ~~2021.~~2022.

2. Summary of Significant Accounting Policies

Please see Note 2 “Summary of Significant Accounting Policies” contained in the audited consolidated financial statements for the year ended December 31, ~~2020~~2021 included in Coronado Global Resources Inc.’s Annual Report on Form 10-K filed with the SEC and ASX on February ~~25, 2021.~~22, 2022.

(a) Newly Adopted Accounting Standards

~~“Income Taxes - Simplifying~~During the period there has been no new Accounting ~~for Income Taxes”~~ ~~- In December 2019,~~Standards Update issued by the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, 2019-12, which simplified various aspects related to accounting for income taxes. ASU 2019-12 removed certain exceptions to the general principles in Accounting Standards Codification, or ASC, Topic 740 – Income Taxes, and clarified and amended existing guidance to improve consistent application.

~~The adoption of ASU 2019-12 on January 1, 2021 did not have~~that had material impact on the Company’s consolidated financial statements.

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 operations in Australia, or Australian Operations, comprise the 100%-owned Curragh producing mine complex. The operations in the United States, or U.S. Operations, comprise 2 100%-owned producing mine complexes (Buchanan and Logan), 1 100%-owned idled mine complex (Greenbrier), and 2 development properties ~~(Pangburn-Shaner-Fallowfield~~(Mon Valley and Russell County) ~~and 1 idle property (Amonate)~~.

The Company operates its business along ~~two~~2 reportable segments: Australia and the United States. The organization of the two reportable segments reflects how the Company’s chief operating decision maker, or CODM, manages and allocates resources to the various components of the Company’s business.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~7

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

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.

Coronado Global Resources Inc. Form 10-Q March 31, 20226

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 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 condensed consolidated financial statements.

Reportable segment results as of and for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ are presented below:

		Australia		United States		Other and Corporate		Total		Australia		United States		Other and Corporate		Total
		(in US$ thousands)								(in US$ thousands)
Three months ended September 30, 2021
Three months ended March 31, 2022
Total revenues	$	342,372	$	231,219	$	—	$	573,591	$	605,298	$	341,827	$	—	$	947,125
Adjusted EBITDA		67,383		88,441		(8,084)		147,740		238,968		179,899		(7,880)		410,987
Net income (loss)		39,868		54,444		(12,324)		81,988
Net income/(loss)										150,147		122,968		(3,217)		269,898
Total assets		1,155,082		862,961		183,863		2,201,906		1,371,294		976,326		504,735		2,852,355
Capital expenditures		7,972		9,436		182		17,590		15,962		23,749		92		39,803

Three months ended September 30, 2020
Total revenues	$	271,413	$	104,972	$	—	$	376,385
Adjusted EBITDA		2,144		14,413		(7,006)		9,551
Net loss		(28,582)		(12,016)		(1,196)		(41,794)
Total assets		1,106,518		952,167		51,648		2,110,333
Capital expenditures		14,574		8,644		92		23,310

Nine months ended September 30, 2021
Three months ended March 31, 2021
Total revenues	$	832,098	$	541,860	$	—	$	1,373,958	$	238,293	$	137,818	$	—	$	376,111
Adjusted EBITDA		30,445		164,404		(21,408)		173,441		(23,059)		36,530		(5,830)		7,641
Net (loss) income		(65,970)		83,157		(31,256)		(14,069)		(42,331)		10,391		(9,032)		(40,972)
Total assets		1,155,082		862,961		183,863		2,201,906		1,082,586		855,527		117,616		2,055,729
Capital expenditures		28,186		40,061		1,650		69,897		7,032		14,538		1,034		22,604

Nine months ended September 30, 2020
Total revenues	$	744,968	$	345,083	$	—	$	1,090,051
Adjusted EBITDA		8,406		56,153		(20,063)		44,496
Net loss		(51,483)		(76,889)		(36,617)		(164,989)
Total assets		1,106,518		952,167		51,648		2,110,333
Capital expenditures		33,378		50,561		1,298		85,237

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~8

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

The reconciliations of Adjusted EBITDA to net income attributable to the Company for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ are as follows:

	Three months ended				Nine months ended				Three months ended
	September 30,				September 30,				March 31,
	2021		2020		2021		2020		2022		2021
	(in US$ thousands)				(in US$ thousands)				(in US$ thousands)
Net income (loss)	$	81,988	$	(41,794)	$	(14,069)	$	(164,989)	$	269,898	$	(40,972)
Depreciation, depletion and amortization		38,461		48,693		132,754		135,542		38,009		53,081
Interest expense (net of income)		18,251		12,207		49,982		36,528		17,332		15,135
Other foreign exchange losses		2,487		1,614		4,376		5,829		1,991		1,749
Loss on extinguishment of debt		0		—		5,744		—
Income tax expense (benefit)		9,096		(11,169)		(1,788)		(31,525)		81,943		(19,068)
Impairment of assets		—		0		—		63,111
Restructuring costs⁽¹⁾		0		—		2,300		0
Losses on idled assets held for sale⁽²⁾		(113)		0		2,216		0
Decrease in provision for discounting and credit losses		(2,430)		0		(8,074)		0
Losses on idled assets held for sale⁽¹⁾										1,386		1,494
Increase (decrease) in provision for discounting and credit losses										428		(3,778)
Consolidated Adjusted EBITDA	$	147,740	$	9,551	$	173,441	$	44,496	$	410,987	$	7,641

⁽¹⁾ During the nine months ended September 30, 2021, 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 coal production relative to the prevailing global coal market conditions. Costs associated with this initiative include non-recurring voluntary and involuntary workforce reduction, external consulting services and other related activities.

⁽²⁾⁽¹⁾ These losses relate to idled non-core assets that the Company has classified as held for sale with the view that these will be sold within the next twelve months.

Coronado Global Resources Inc. Form 10-Q March 31, 20227

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The reconciliations of capital expenditures per the Company’s segment information to capital expenditures disclosed on the unaudited Condensed Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ are as follows:

		Nine months ended September 30,				Three months ended March 31,
		2021		2020		2022		2021
		(in US$ thousands)				(in US$ thousands)
Capital expenditures per Condensed Consolidated Statements of Cash Flows	$	75,897	$	85,237	$	37,768	$	28,604
Accruals for capital expenditures						9,510		0
Payment for capital acquired in prior periods		(6,000)		0		(7,475)		(6,000)
Capital expenditures per segment detail	$	69,897	$	85,237	$	39,803	$	22,604

Disaggregation of Revenue

The Company disaggregates the revenue from contracts with customers by major product group for each of the Company’s reportable 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.

		Three months ended September 30, 2021						Three months ended March 31, 2022
		Australia		United States		Total		Australia		United States		Total
		(in US$ thousands)						(in US$ thousands)
Product Groups:
Metallurgical coal	$	306,033	$	228,561	$	534,594	$	554,009	$	337,720	$	891,729
Thermal coal		26,525		2,168		28,693		42,289		2,610		44,899
Total coal revenue		332,558		230,729		563,287		596,298		340,330		936,628
Other⁽¹⁾		9,814		490		10,304		9,000		1,497		10,497
Total	$	342,372	$	231,219	$	573,591	$	605,298	$	341,827	$	947,125

		Three months ended March 31, 2021
		Australia		United States		Total
		(in US$ thousands)
Product Groups:
Metallurgical coal	$	206,452	$	136,984	$	343,436
Thermal coal		22,998		768		23,766
Total coal revenue		229,450		137,752		367,202
Other⁽¹⁾		8,843		66		8,909
Total	$	238,293	$	137,818	$	376,111

(1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability.

4.Inventories

(in US$ thousands)	March 31, 2022		December 31, 2021
Raw coal	$	12,829	$	17,334
Saleable coal		58,687		42,006
Total coal inventories		71,516		59,340
Supplies inventory		61,243		59,582
Total inventories	$	132,759	$	118,922

Coal inventories measured at its net realizable value were $4.0million and $2.2 million at March 31, 2022 and December 31, 2021, respectively, and relates to coal designated for deliveries under the Stanwell non-market coal supply agreement.

Coronado Global Resources Inc. Form 10-Q ~~September 30,~~March 31, 20228

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5.Property, Plant and Equipment

(in US$ thousands)	March 31, 2022		December 31, 2021
Land	$	28,286	$	27,853
Buildings and improvements		90,569		88,079
Plant, machinery, mining equipment and transportation vehicles		987,523		963,272
Mineral rights and reserves		374,326		374,326
Office and computer equipment		8,908		8,718
Mine development		583,828		566,201
Asset retirement obligation asset		75,498		75,215
Construction in process		62,746		42,055
		2,211,684		2,145,719
Less accumulated depreciation, depletion and amortization		786,105		748,356
Net property, plant and equipment	$	1,425,579	$	1,397,363

6.Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

(in US$ thousands)	March 31, 2022		December 31, 2021
Wages and employee benefits	$	44,336	$	41,187
Taxes other than income taxes		7,817		6,246
Accrued royalties		107,144		70,237
Accrued freight costs		35,341		27,754
Accrued mining fees		79,917		65,835
Acquisition related accruals		32,173		31,201
Other liabilities		26,231		28,482
Total accrued expenses and other current liabilities	$	332,959	$	270,942

Included within acquisition related accruals is an amount outstanding for stamp duty payable on the Curragh acquisition of $32.2 million (A$43.0 million). This amount was outstanding as at March 31, 2022 and December 31, 2021 pending assessment by the Office of State Revenue in Queensland, Australia.

7. Dividends Payable

On February 24, 2022, the Company’s Board declared an unfranked ordinary dividend of 9.0 cents per CDI (USD). CDIs were quoted “ex” dividend on March 17, 2022. The dividend had a record date of March 18, 2022 and was paid on April 8, 2022.

Coronado Global Resources Inc. Form 10-Q March 31, 20229

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Three months ended September 30, 2020

Australia

United States

Total

(in US$ thousands)
Product Groups:

Metallurgical coal

$
233,063

$
103,401

$
336,464
Thermal coal

29,428

845

30,273
Total coal revenue

262,491

104,246

366,737
Other⁽¹⁾

8,922

726

9,648
Total

$
271,413

$
104,972

$
376,385

Nine months ended September 30, 2021

Australia

United States

Total

(in US$ thousands)
Product Groups

Metallurgical coal

$
734,143

$
534,017

$
1,268,160
Thermal coal

70,614

5,479

76,093
Total coal revenue

804,757

539,496

1,344,253
Other⁽¹⁾

27,341

2,364

29,705
Total

$
832,098

$
541,860

$
1,373,958

Nine months ended September 30, 2020

Australia

United States

Total

(in US$ thousands)
Product Groups

Metallurgical coal

$
640,893

$
337,599

$
978,492
Thermal coal

80,079

2,983

83,062
Total coal revenue

720,972

340,582

1,061,554
Other⁽¹⁾

23,996

4,501

28,497
Total

$
744,968

$
345,083

$
1,090,051

~~(1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability.~~

4.~~Expenses~~

~~Other, Net~~

Three months ended

Nine months ended

September 30,

September 30,

2021

2020

2021

2020

(in US$ thousands)

(in US$ thousands)
Other foreign exchange losses

$
(2,487)

$
(1,614)

$
(4,376)

$
(5,829)
Other income

1,235

1,253

766

983
Total Other, net

$
(1,252)

$
(361)

$
(3,610)

$
(4,846)

~~5. Capital Structure~~

On May 14, 2021, the Company successfully completed the institutional component of a fully underwritten 1-for-4.73 pro-rata accelerated non-renounceable entitlement offer, or the Entitlement Offer. On completion, a total of 253,108,820 fully paid new CDIs (representing a beneficial interest in 25,310,882 shares of common stock) were issued at a price of A$0.45 per CDI, resulting in gross proceeds of $87.7 million (A$113.9 million).

On June 1, 2021, the Company successfully completed the retail component of the Entitlement Offer. On completion, a total of 39,466,010 fully paid new CDIs (representing a beneficial interest in 3,946,601 shares of common stock) were issued on the ASX at a price of A$0.45 per CDI, resulting in gross proceeds of $13.7 million (A$17.8 million).

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~10

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~Pursuant to the Entitlement Offer, a total of 29,257,483 shares of common stock, with a par value of $0.01, were issued by the Company.~~

~~Proceeds from the Entitlement Offer, net of share issuance costs, of $97.7 million were included a~~s part of a refinancing transaction, which involved the (i) repayment of all outstanding obligations under the Company’s Multicurrency Revolving Syndicated Facility Agreement, or SFA, and termination of such agreement; (ii) cash collateralization of credit support facilities, which were used to provide back-to-back support for bank guarantees that had been previously issued under the SFA; and (iii) payment of discounts, fees and expenses related to the refinancing transaction. See Note 11 “Interest Bearing Liabilities”.

~~Coronado Group LLC~~

Coronado Group LLC, the Company’s controlling stockholder, exercised its right to participate in the institutional component of the Entitlement Offer and purchased 71,980,363 CDIs (representing a beneficial interest in 7,198,036 shares of common stock) at a price of A$0.45 per CDI, resulting in gross proceeds of $24.9 million (A$32.4 million).

As of September 30, 2021, Coronado Group LLC 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. The remaining 831,392,331 CDIs (representing a beneficial interest in 83,139,233 shares of common stock) are owned by investors in the form of CDIs publicly traded on the ASX.

~~As of December 31, 2020, 1,383,878,900 CDIs (representing a beneficial interest in 138,387,890 shares of common stock) were outstanding.~~

~~6. Trade and related party receivables~~

The Company extends trade credit to its customers in the ordinary course of business. Trade receivables and related party receivables are recorded initially at fair value and subsequently at amortized cost, less any Expected Credit Losses, or ECL.

~~Xcoal~~

On May 27, 2021, Xcoal Energy and Resources, or Xcoal, ceased to be a related party after Xcoal’s founder, chief executive officer and chief marketing officer, Mr. Ernie Thrasher, retired as a non-executive director of the Company.

During the nine months ended September 30, 2021, Xcoal repaid its past due balance of $85.2 million in full. During the nine months ended September 30, 2021, the Company fully reversed the provision for discounting and credit losses of $9.0 million recorded at December 31, 2020 in respect of past due amounts.

“Coal revenues from related parties” of $97.3 million in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the period up to May 27, 2021, represent revenues from Xcoal while it was a related party. Revenues from coal sales to Xcoal after May 27, 2021 of $82.6 million and $96.9 million, respectively, for the three and nine months ended September 30, 2021, are included within “Coal revenues” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

Revenues from Xcoal of $17.1 million and $106.2 million are recorded as “Coal revenues from related parties” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2020, respectively.

~~From July 1, 2021, the Company has agreed credit terms with Xcoal. Any sales in excess of the credit amount will be made on prepayment, letter of credit and cash on delivery basis.~~

At September 30, 2021, amounts outstanding from Xcoal in respect of coal sales was $46.1 million, all of which is current and not due, and is included within “Trade receivables” on the unaudited Condensed Consolidated Balance Sheet.

At December 31, 2020, amounts outstanding from Xcoal in respect of coal sales were $91.0 million, of which $85.2 million was past due and was included in “Related party trade receivables” on the audited Condensed Consolidated Balance Sheet, and $5.8 million was secured by a letter of credit. As of December 31, 2020, the carrying value of related party trade receivables from Xcoal, net of a $9.0 million provision for discounting and credit losses, was $82.0 million.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~11

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~7. Provision for 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:~~

(in US$ thousands)

Trade and related party trade receivables

Other Assets

Total
As at January 1, 2021

$
9,298

$
0

$
9,298
Change in estimates during the current period

445

481

926
Unwind of provision for expected credit losses

(9,000)

0

(9,000)
As of September 30, 2021

$
743

$
481

$
1,224

8.~~Inventories~~

(in US$ thousands)

September 30,
2021

December 31,2020
Raw coal

$
21,891

$
19,557
Saleable coal

40,577

26,581
Total coal inventories

62,468

46,138
Supplies inventory

57,681

63,997
Total inventories

$
120,149

$
110,135

9.~~Property, Plant and Equipment~~

(in US$ thousands)

September 30,
2021

December 31,2020
Land

$
27,451

$
27,985
Buildings and improvements

86,323

89,726
Plant, machinery, mining equipment and transportation vehicles

941,861

939,521
Mineral rights and reserves

374,310

374,340
Office and computer equipment

8,731

4,316
Mine development

558,121

577,631
Asset retirement obligation asset

77,494

81,603
Construction in process

46,570

38,321

2,120,861

2,133,443
Less accumulated depreciation, depletion and amortization

710,975

611,935
Net property, plant and equipment

$
1,409,886

$
1,521,508

~~10.Accrued Expenses and Other Current Liabilities~~

~~Accrued expenses and other current liabilities consist of the following:~~

(in US$ thousands)

September 30,
2021

December 31,2020
Wages and employee benefits

$
43,142

$
32,386
Taxes other than income taxes

11,219

7,024
Accrued royalties

45,625

36,149
Accrued freight costs

28,860

29,199
Accrued mining fees

55,494

76,044
Acquisition related accruals

30,986

33,119
Other liabilities

23,018

20,605
Total accrued expenses and other current liabilities

$
238,344

$
234,526

~~Included within acquisition related accruals is an amount outstanding for stamp duty payable on the Curragh acquisition of $31.0~~ ~~million (A$43.0~~ ~~million). This amount was outstanding as at September 30, 2021 and December 31, 2020 pending assessment by the Office of State Revenue in Queensland, Australia.~~

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~12

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~11.~~Interest Bearing Liabilities

The following is a summary of interest-bearing liabilities at September 30, 2021:
The following is a summary of interest-bearing liabilities at March 31, 2022:									The following is a summary of interest-bearing liabilities at March 31, 2022:

(in US$ thousands)			September 30, 2021		December 31, 2020	Weighted Average Interest Rate at September 30, 2021		Final Maturity			March 31, 2022		December 31, 2021	Weighted Average Interest Rate at March 31, 2022		Final Maturity
10.75% Senior Secured Notes		$	350,000	$	0	12.14%	⁽²⁾	2026		$	314,453	$	315,000	12.14%	⁽²⁾	2026
ABL Facility			0		0			2024			0		0			2024
Multicurrency Revolving Syndicated Facility			0		327,625			2023
Discount and debt issuance costs⁽¹⁾			(17,183)		0						(14,178)		(14,831)
Total interest bearing liabilities		$	332,817	$	327,625					$	300,275	$	300,169

⁽¹⁾Debt issuance costs incurred on the establishment of the ABL Facility has been included within "Other non-current assets" on the unaudited Condensed Consolidated Balance Sheet.	⁽¹⁾Debt issuance costs incurred on the establishment of the ABL Facility has been included within "Other non-current assets" on the unaudited Condensed Consolidated Balance Sheet.								⁽¹⁾Debt issuance costs incurred on the establishment of the ABL Facility has been included within "Other non-current assets" on the unaudited Condensed Consolidated Balance Sheet.

⁽²⁾ Represents the effective interest rate.

~~Syndicated Facility Agreement~~

On May 14, 2021, the Company repaid all obligations under the SFA, including the outstanding balance of $324.1 million, and terminated such agreement using a portion of the net proceeds from the Entitlement Offer along with a portion of proceeds from the offering of the Notes (as defined below). As a result of the early termination of the SFA, the Company recorded a loss on debt extinguishment of $5.7 million in its unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the nine months ended September 30, 2021.

Senior Secured Notes

~~On May 12, 2021,~~As of March 31, 2022, the Company, entered into an indenture, or the Indenture among Coronado Finance Pty Ltd, an Australian proprietary company and a wholly-owned subsidiary of the Company, which is referred to as the Issuer or the Australian Borrower, the Company, the other guarantors party thereto, which are referred to, collectively with the Company, as the Guarantors, and Wilmington Trust, National Association, as trustee, or the Trustee, and as priority lien collateral trustee, relating to the issuance by the Issuer ofCompany’s $350.0 million aggregate principal amount of 10.750% Senior Secured Notes due 2026, or the ~~Notes.~~

~~The~~ Notes, ~~were issued at a price of 98.112% of their principal~~outstanding amount and bear interest at a rate of 10.75% per annum. Interest on the Notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2021, to record holders of the Notes on the immediately preceding May 1 and November 1, as applicable.was $314.5 million. The Notes mature on May 15, 2026 and are senior secured obligations of the ~~Issuer.~~

The 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) a first-priority lien on substantially all of the Company’s assets and the assets of the other Guarantors (other than accounts receivable and other rights to payment, inventory, intercompany indebtedness, certain general intangibles and commercial tort claims, commodities accounts, deposit accounts, securities accounts and other related assets and proceeds and products of each of the foregoing, or, collectively, the ABL Collateral), or the Notes Collateral, and (ii) a second-priority lien on the ABL Collateral, which is junior to a first-priority lien, for the benefit of the lenders under the Company’s senior secured asset-based revolving credit agreement in an initial aggregate principal amount of $100.0 million, or the ABL Facility.Company.

The terms of the 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. As of March 31, 2022, the Company was in compliance with all applicable covenants under the Indenture.

~~Upon~~In connection with the ~~occurrence of a “Change of Control,” as defined in~~dividend declared on February 24, 2022, the ~~Indenture, the Issuer is required~~Company offered to ~~offer~~purchase up to ~~repurchase the Notes at 101% of the~~$100.0 million 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 Notes at 101% 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, provided that the Issuer redeems at least 90% of the Notes outstanding prior to such Change of Control. Upon the occurrence of certain changes in tax law (as described in the Indenture), the Issuer may redeem any of the Notes at a redemption price equal to 100% of the principal amount of the Notes pursuant to ~~be redeemed plus accrued and unpaid interest, if any, to, but excluding,~~ the ~~redemption date.~~

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~13

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~The Issuer may redeem any~~terms of the ~~Notes beginning on May 15, 2023. The initial redemption price of~~Indenture. On March 30, 2022, pursuant to the ~~Notes is 108.063% of their~~offer to purchase, the Company purchased an aggregate principal amount ~~plus accrued and unpaid interest, if any,~~of $0.5 million at a price equal to ~~but excluding, the redemption date. The redemption price will decline each year after May 15, 2023, and will be 100%~~104% of the principal amount of the Notes, plus accrued and unpaid interest ~~beginning~~ on ~~May 15, 2025. The Issuer may also redeem some or all of~~ the Notes ~~at any time and from time to time prior to May 15, 2023 at a price equal to 100% of the principal amount thereof plus a “make-whole” premium, plus accrued and unpaid interest, if any,~~ to, but ~~excluding, the redemption date.~~

~~During any twelve-month period ending prior to May 15, 2023, the Issuer may redeem the Notes (including additional Notes, if any) in an aggregate principal amount~~ not to exceed 10% of the aggregate principal amount of the Notes (including additional Notes, if any) originally issued at a redemption price (expressed as a percentage of principal amount) of 103%, 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 May 15, 2023, the Issuer may redeem in the aggregate up to 40% of the original aggregate principal amount of the 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 110.75%, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, so long as at least 60% of the original aggregate principal amount of the Notes (calculated after giving effect to any issuance of additional Notes) issued under the Indenture remains outstanding after each such redemption and each such redemption occurs within 120 days afterincluding, the date of ~~the closing of such equity offering.~~redemption.

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 25% in aggregate principal amount of the then-outstanding Notes to accelerate, or in certain cases, will automatically cause the acceleration of, the amounts due under the Notes.

~~Proceeds from the~~Debt issuance ~~of the Notes, net of discounting and issuance~~ costs, ~~of $331.8 million were included as part of a refinancing transaction which involved the (i) repayment of all outstanding obligations under the SFA and the termination of such agreement; (ii)~~ ~~cash collateralization of credit support facilities, which were used to provide back-to-back support for bank guarantees that had been previously issued under the SFA; and (iii) payment of discounts, fees and expenses related to the refinancing transaction.~~

~~In connection with the issuance of the Notes, the Company incurred debt issuance costs of $11.6 million and discount on issuance of $6.6 million,~~ recorded as a direct deduction from the face amount of the ~~Notes.~~Notes, were $14.2

~~The Energy & Mineral Group~~

On May 12, 2021, affiliates of The Energy & Minerals Group, or EMG, which is the Company’s controlling stockholder through its ownership of Coronado Group LLC, participated in the Notes Offering and purchased $65.0 million aggregate principal amount of Notes at the closing of the Notes Offering. The principal amount of $65.0 million for Notes held by EMG remain unchanged as at September 30, 2021. At September 30, 2021, interest payable to affiliates of EMG on the Notes was $2.6 million and ~~was recorded within “Accrued expenses~~$14.8 million at March 31, 2022 and other current liabilities” in the unaudited Condensed Consolidated Balance Sheet. Interest expense to affiliates of EMG were $1.9 million and $2.8 million for the three and nine months ended September 30,December 31, 2021, ~~respectively, and recorded in “Interest expense, net” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.~~respectively.

ABL Facility

On May 12, 2021, the Company ~~Coronado Coal Corporation,~~entered into a ~~Delaware corporation and wholly-owned subsidiary~~senior secured asset-based revolving credit agreement in an initial principal amount of ~~the Company,~~$100.0 million, or the ~~U.S. Borrower, the Australian Borrower and the Guarantors entered into the~~ ABL Facility, ~~agreement with Citibank, N.A., as administrative agent and a lender, and various other financial institutions, with an aggregate multi-currency lender commitment of up to $100.0 million,~~ including a $30.0 million sublimit for the issuance of letters of credit and $5.0 million for swingline loans, at any time outstanding, subject to borrowing base availability. The ABL Facility ~~will mature~~matures on May 12, ~~2024 and replaces the SFA.~~

Revolving loan (and letter of credit) availability under the ABL Facility is subject to a borrowing base, which at any time is equal to the sum of certain eligible accounts receivable, certain eligible inventory and certain eligible supplies inventories and, in each case, subject to specified advance rates. The borrowing base is subject to certain reserves, which may be established by the agent in its reasonable credit discretion, that could reasonably be expected to have an adverse effect on the value of the collateral included in the borrowing base.2024.

Borrowings under the ABL Facility bear interest at a rate equal to a BBSY rate plus an applicable margin. In addition to paying interest on the outstanding borrowings under the ABL Facility, the Company is also required to pay a fee in respect of unutilized commitments, on amounts available to be drawn under outstanding letters of credit and certain administrative fees.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~14

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

The obligations of the borrowers under the ABL Facility are guaranteed by (a) a first priority-lien in the ABL Collateral, (b) a second priority-lien in the Notes Collateral and (c) solely in the case of the obligations of the Australian Borrower, a featherweight floating security interest over certain accounts released from the security by the Australian Borrower in favor of Stanwell Corporation Limited, or Stanwell.

The ABL Facility contains customary covenants for asset-based credit agreement of this type, including, among others: (i) the requirement to deliver financial statements, other reports and notices; (ii) covenants related to the payment of dividends on, or purchase or redemption of, capital stock; (iii) covenants related to the incurrence or prepayment of certain debt; (iv) covenants related to the incurrence of liens or encumbrances; (v) compliance with laws; (vi) restrictions on certain mergers, consolidations and asset dispositions; and (vii) restrictions on certain transactions with affiliates. Subject to customary grace periods and notice requirements, the ABL Facility also contains customary events of default. Additionally, the ABL Facility contains a springing fixed charge coverage ratio of not less than 1.00 to 1.00, which ratio is tested if availability under the ABL Facility is less than a certain amount. As of September 30, 2021, the Company is not subject to this covenant. As at September 30, 2021, the Company met its undertakings under the ABL Facility.

~~To establish the ABL Facility, the Company incurred debt~~ ~~issuance costs of $5.4 million. The Company has elected an accounting policy to present debt issuance costs incurred before the debt liability is recognized~~ (e.g., before the debt proceeds are received) as an asset which will be amortized ratably over the term of the line-of-credit. The costs will not be subsequently reclassified as a direct deduction of the liability. At September 30, 2021, issuance costs incurred to establish the ABL Facility have been classified in “Other non-current assets” in the unaudited Condensed Consolidated Balance Sheet.

As at ~~September 30, 2021,~~March 31, 2022, 0 amounts were drawn and 0 letters of credit were outstanding under the ABL Facility. At March 31, 2022, the Company was in compliance with all applicable covenants under the ABL Facility.

~~12. Other Financial Liabilities~~

~~On January 6, 2021,~~Debt issuance costs, recorded as “Other non-current assets” in the Company entered into an agreement with a third-party financier to sell and leaseback items of property, plant and equipment owned by Curragh, a wholly-owned subsidiary of the Company. The transaction did not satisfy the sale criteria under ASC 606 – 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 its unaudited ~~Condensed~~ Consolidated Balance ~~Sheet. The proceeds received from the transaction of $23.5~~ sheet, were $3.8million (A$30.2 million) were recognized as “Other financial liabilities” on the unaudited Condensed Consolidated Balance Sheet. The term of the financing arrangement ranges up to five years with an implied interest rate of up to 7.8% per annum. The carrying value of this financial liability, net of issuance costs, was $18.6and $4.3 million as at ~~September 30,~~March 31, 2022 and December 31, 2021, ~~$3.9 million of which is classified as a current liability.~~respectively.

~~13.~~9. Income Taxes

For the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the Company estimated its annual effective tax rate and applied this effective tax rate to its year-to-date pretax income at the end of the interim reporting period. The tax effects of unusual or infrequently occurring items, including effects of changes in tax laws or rates and changes in judgment about the realizability of deferred tax assets, are reported in the interim period in which they occur.

Coronado Global Resources Inc. Form 10-Q March 31, 202210

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company’s ~~2021~~2022 estimated annual effective tax rate ~~including discrete items,~~ is ~~11.28%.~~ 23.3%, which has been favorably impacted by mine depletion deductions in the United States.The Company had an income tax ~~benefit~~expense of ~~$1.8~~$81.9 million based on ~~a loss~~ an incomebefore tax of ~~$15.9~~$351.8 millionfor the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022.

Income tax benefit of ~~$31.5~~$19.1 million for the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 was calculated based on an estimated annual effective tax rate of ~~16.0%~~31.8% for the period.

~~The Company assessed the need for a valuation allowance by evaluating future taxable income, available for tax strategies and the reversal of temporary tax differences.~~

As of September 30, 2021, the Australian Operations were in a cumulative loss position and held a valuation allowance of $19.8 million against the full amount of their deferred tax assets. A cumulative loss position constitutes significant negative evidence regarding future taxable income, and is defined as a cumulative pre-tax loss for the current and two preceding years. The Company’s deferred tax liabilities, related to its U.S. Operations, decreased during the period due to the impact of the valuation allowance recorded in its Australian Operations’ deferred tax assets and the overall tax loss position during the nine months ended September 30, 2021.

The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements. For the ~~nine~~three months ended ~~September 30,~~March 31, 2021, ~~and the year ended December 31, 2020,~~ the Company had 0 unrecognized tax benefits. If accrual for interest or penalties is required, it is the Company’s policy to include these as a component of income tax expense.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~15

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

The Company is subject to taxation in the U.S. and its various states, as well as Australia and its various localities. In the U.S. and Australia, the first tax return was lodged for the year ended December 31, 2018. In the U.S., companies are subject to open tax audits for a period of seven years at the federal level and five years at the state level. In Australia, companies are subject to open tax audits for a period of four years from the date of assessment.

~~On March 27, 2020,~~The Company assessed the ~~United States Congress enacted~~need for a valuation allowance by evaluating future taxable income, available for tax strategies and the ~~Coronavirus Aid, Relief~~reversal of temporary tax differences.

At December 31, 2021, the Australian Operations had tax losses carried forward of $27.0 million (tax effected), which are indefinite lived and ~~Economic Security Act, or CARES Act, to provide certain relief as~~included in deferred tax assets. In addition, a ~~result~~company, which is not part of the ~~COVID-19 outbreak. The Company is currently evaluating how provisions in the CARES Act will impact its~~Australian tax consolidated ~~financial statements, but it is not expected to have~~group, had tax losses carried forward of $8.1 million (tax effected) for which a ~~material impact.~~

On April 9, 2021, West Virginia Governor Jim Justice signed into law House Bill 2026, adopting significant changes to the state’s income tax code, including market-based source, single-sales factor apportionment and limitations on temporary or mobile worker withholding. The new law resulted in a tax impact of approximately $0.9 million.full valuation allowance has been recognized.

~~14.~~10. 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.

Basic and diluted earnings per share was calculated as follows (in thousands, except per share data):

Three months ended September 30,

Nine months ended September 30,
(in US$ thousands, except per share data)

2021

2020

2021

2020
Numerator:

Net income (loss)

$
81,988

$
(41,794)

$
(14,069)

$
(164,989)
Less: Net loss attributable to Non-controlling interest

0

(2)

(2)

(6)
Net income (loss) attributable to Company stockholders

$
81,988

$
(41,792)

$
(14,067)

$
(164,983)

Denominator (in thousands):

Weighted-average shares of common stock outstanding

167,645

112,582

153,078

102,001
Effects of dilutive shares

171

-

-

-
Weighted average diluted shares of common stock outstanding

167,816

112,582

153,078

102,001
Earnings (Loss) Per Share (US$):

Basic

0.49

(0.37)

(0.09)

(1.62)
Dilutive

0.49

(0.37)

(0.09)

(1.62)

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~16

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

Basic and diluted earnings per share was calculated as follows (in thousands, except per share data):

	Three months ended March 31,
(in US$ thousands, except per share data)	2022		2021
Numerator:
Net income (loss)	$	269,898	$	(40,972)
Less: Net income (loss) attributable to Non-controlling interest		0		(2)
Net income (loss) attributable to Company stockholders	$	269,898	$	(40,970)

Denominator (in thousands):
Weighted-average shares of common stock outstanding		167,645		138,388
Effects of dilutive shares		88		-
Weighted average diluted shares of common stock outstanding		167,733		138,388
Earnings (Loss) Per Share (US$):
Basic		1.61		(0.30)
Dilutive		1.61		(0.30)

~~15.~~11.~~Derivatives and~~ Fair Value Measurement

~~(a)Derivatives~~

The Company may use derivative financial instruments to manage its financial risks in the normal course of operations, including foreign currency risks, commodity price risk related to purchase of raw materials (such as gas or diesel) and interest rate risk. Derivatives for speculative purposes are strictly prohibited under the Treasury Risk Management Policy approved by the Board of Directors.

The financing counterparties to the derivative contracts potentially expose the Company to credit-related risk. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of the financial instrument. The Company mitigates such credit risk by entering into derivative contracts with high credit quality counterparties, limiting the amount of exposure to each counterparty and frequently monitoring their financial condition.

~~Forward fuel contracts~~

In 2020, the Company entered into forward derivative contracts to hedge its exposure to diesel fuel that was expected to be used at its Australian Operations during 2021. In connection with the repayment and termination of the SFA, the Company closed out all outstanding forward fuel derivative contracts and received proceeds, representing hedge gain on settlement, of $5.8 million. This hedge gain on settlement has been deferred in “Accumulated other comprehensive loss” on the unaudited Condensed Consolidated Balance Sheet until the hedge transaction impacts income, at which point the related hedge gain would be reclassified to the “Cost of coal revenues” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

~~NaN forward fuel derivative contracts were outstanding at September 30, 2021.~~

~~Hedge gains, net of tax, recognized in “Accumulated other comprehensive loss” of $2.0~~million as at September 30, 2021 are expected to be recognized into “Cost of coal revenues” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income within the next three months when the hedged transaction impacts income. Refer to Note 16 “Accumulated Other Comprehensive Losses” for further disclosure.

~~(b)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

Coronado Global Resources Inc. Form 10-Q March 31, 202211

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 1 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 3 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.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~17

~~Table of Contents~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

Financial Instruments Measured on a Recurring Basis

As of ~~September 30, 2021,~~March 31, 2022, there were 0 financial instruments required to be measured at fair value on a recurring basis.

Other Financial Instruments

The following methods and assumptions are used to estimate the fair value of other financial instruments as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020:~~2021:

 Cash and restricted cash, accounts receivable, accounts payable, accrued expenses, lease liabilities and other current financial liabilities: The carrying amounts reported in the unaudited Condensed 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 values reported in the unaudited Condensed Consolidated Balance Sheets.

 Interest bearing liabilities: The Company’s outstanding interest-bearing liabilities are carried at amortized cost. As of ~~September 30, 2021,~~March 31, 2022, there were 0 borrowings outstanding under the ABL Facility. The estimated fair value of the Notes is approximately ~~$381.5~~$334.9 million based upon observable market data (Level 2).

~~16.Accumulated Other Comprehensive Losses~~

~~Accumulated other comprehensive losses consisted of the following at September 30, 2021:~~

Net unrealized gain (loss)

(in US$ thousands)

Foreign currency translation adjustments

Cash flow fuel hedges

Total
Balance at December 31, 2020

$
(26,777)

$
(2,029)

$
(28,806)
Net current-period other comprehensive income (loss):

Gain in other comprehensive income (loss) before reclassifications

10,502

11,310

21,812
Loss on long-term intra-entity foreign currency transactions

(27,298)

0

(27,298)
Gains reclassified from accumulated other comprehensive income (loss)

0

(5,130)

(5,130)
Tax effects

0

(2,135)

(2,135)
Total net current-period other comprehensive gain (loss)

(16,796)

4,045

(12,751)
Balance at September 30, 2021

$
(43,573)

$
2,016

$
(41,557)

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20221812

Table of Contents

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

~~17.~~12.Accumulated Other Comprehensive Losses

Accumulated other comprehensive losses consisted of the following at March 31, 2022:


(in US$ thousands)		Foreign currency translation adjustments
Balance at December 31, 2021	$	(44,228)
Net current-period other comprehensive income (loss):
Gain in other comprehensive income (loss) before reclassifications		3,671
Gain on long-term intra-entity foreign currency transactions		12,587
Total net current-period other comprehensive gain		16,258
Balance at March 31, 2022	$	(27,970)

13. 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:

(in US$ thousands)			Amount			Amount
Year ending December 31,
2021		$	2,159
2022			5,663		$	5,265
2023			4,704			5,145
2024			5,464			5,056
2025			4,452			4,893
2026						4,813
Thereafter			23,295			24,695
Total		$	45,737		$	49,867

Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932, Extractive Activities – Mining.	Mineral leases are not in scope of ASC 842 and continue to be accounted for under the guidance in ASC 932, Extractive Activities – Mining.			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 ~~September 30, 2021,~~March 31, 2022, purchase commitments for capital expenditures were ~~$15.0~~$26.2 million, all of which is obligated within the next twelve 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 119 years. In the U.S., the Company typically negotiates its rail and coal terminal access on an annual basis. As of ~~September 30, 2021,~~March 31, 2022, these Australian and U.S. commitments under take-or-pay arrangements totaled ~~$1.3~~$1.1 billion, of which approximately ~~$98.6~~$89.5 million is obligated within the next ~~year.~~twelve months.

~~18.~~14.Contingencies

In the normal course of business, the Company is a party to certain guarantees and financial instruments with off-balance sheet risk, such as letters of credit and performance or surety bonds. No liabilities related to these arrangements are reflected in the Company’s unaudited Condensed Consolidated Balance Sheets. Management does not expect any material losses to result from these guarantees or off-balance sheet financial instruments.

At ~~September 30, 2021,~~March 31, 2022, the Company had outstanding bank guarantees of ~~$45.7~~$46.1 million to secure various obligations and commitments.

Coronado Global Resources Inc. Form 10-Q March 31, 202213

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Restricted deposits represent cash deposits held at third parties as required by certain agreements entered into by the Company to provide cash collateral. The Company had cash collateral in the form of deposits in the amount of ~~$77.2~~ $84.8 million and ~~$8.4~~$81.0 million as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively, to provide back-to-back support for bank guarantees, financial payments and other performance obligations and various other operating agreements. These deposits are restricted and classified as long-term assets in the unaudited Condensed 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 of such letter of credit. As of ~~September 30, 2021,~~March 31, 2022, 0 letter of credit was outstanding and no cash collateral was required.

For the U.S. Operations in order to provide the required financial assurance, the Company generally uses surety bonds for post-mining reclamation. The Company can also use bank letters of credit to collateralize certain obligations. As of ~~September 30, 2021,~~March 31, 2022, the Company had outstanding surety bonds of ~~$29.7~~$29.6 million and letters of credit of $16.8 million issued from our available bank guarantees, to secure various obligations and commitments. Future regulatory changes relating to these obligations could result in ~~increased~~increase obligations, additional costs or additional collateral requirements.

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

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~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

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.

~~19.~~15. Subsequent Events

~~Sale~~On May 9, 2022, the Company’s Board of Directors declared a special unfranked dividend of $99.5 million, or 5.9 cents per CDI, reflecting the unaccepted portion of the ~~Amonate Mining Asset~~offer to purchase the Notes made in connection with the dividend declared on February 24, 2022, and a special unfranked dividend of $100.6 million, or 6.0 cents per CDI. CDIs will be quoted as “ex” dividend on May 30, 2022. The dividend will have a record date of May 31, 2022 and be payable on June 21, 2022. The total special dividends of $200.0 million will be funded from available cash.

~~During~~In connection with the fourth quarter of 2020, the Company committed to a plan to sell its Amonate mining property, or Amonate, which has been idled since its acquisition in 2016, and classified the asset as held for sale. The Amonate mining asset is part of the Company’s U.S. reportable segment and is located in the states of Virginia and West Virginia in the United States.

On October 26, 2021, the Company entered into a definitive agreement to sell Amonate, including related assets and liabilities to Ramaco Resources Inc., a Delaware corporation, for a purchase price of $30.0 million, approximately $18.0 million in excess of its carrying value as at September 30, 2021. The net realized gain on completion of this transaction will be included within “Gain on disposal of assets” in the Company’s Consolidated Statement of Operations and Comprehensive Income during the fourth quarter of 2021.

~~The closing of the transaction is subject to customary closing conditions.~~

~~Notes Redemption~~

~~On October 29, 2021, the Company announced it elected to authorize its wholly-owned subsidiary~~declared special dividend, Coronado Finance Pty Ltd, a wholly-owned subsidiary of the Company offered to ~~exercise its optional redemption rights~~purchase up to ~~redeem $35.0~~$100.6 million aggregate principal amount of ~~its Notes. The~~the Notes ~~will be redeemed on November 15, 2021, or the Redemption Date,~~ at a ~~redemption~~purchase price equal to ~~103%~~104% of the principal amount of the Notes pursuant to ~~be redeemed, plus accrued and unpaid interest on the Notes to, but not including, the Redemption Date in accordance with~~ the terms of the ~~Notes and the~~ Indenture. ~~Interest on the portion~~The payment of the special dividend is not contingent on acceptance of the offer to purchase the Notes ~~selected for redemption will cease to accrue on and after~~by the ~~Redemption Date, unless the Company defaults in making the redemption payment.~~Note holders.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of Coronado Global Resources Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying condensed consolidated balance sheet of Coronado Global Resources Inc. (the Company) as of ~~September 30, 2021,~~March 31, 2022, the related condensed consolidated statements of ~~operation~~operations and comprehensive income, stockholders’ equity ~~for the three-month~~ and ~~nine-month periods ended September 30, 2021 and 2020, the related condensed consolidated statements of~~ cash flows for the ~~nine-month~~three-month periods ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ and the related notes (collectively referred to as the “condensed consolidated interim financial statements”). Based on our ~~review,~~reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, ~~2020,~~2021, the related consolidated statements of operations and comprehensive income, stockholders' ~~equity/members’ capital~~equity and cash flows for the year then ended, and the related notes (not presented herein), and in our report dated February ~~25, 2021,~~22, 2022, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, ~~2020,~~2021, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. 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 SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young

Brisbane, Australia

~~November 8, 2021.~~May 9, 2022.

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ITEM 2. 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 unaudited Condensed Consolidated Financial Statements and the related notes to those statements included elsewhere in this Form 10-Q. In addition, this Form 10-Q report should be read in conjunction with the Consolidated Financial Statements for year ended December 31, ~~2020~~2021 included in Coronado Global Resources Inc.’s Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the U.S. Securities and Exchange Commission, or SEC, and the Australian Securities Exchange, or the ASX, on February ~~25, 2021.~~22, 2022.

Unless otherwise noted, references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” “Company,” or “Coronado” refer to Coronado Global Resources Inc. and its consolidated subsidiaries and associates, unless the context indicates otherwise.

All production and sales volumes contained in this Quarterly Report on Form 10-Q are expressed in metric tons, or Mt, millions of metric tons, or MMt, or millions of metric tons per annum, or MMtpa, except where otherwise stated. One Mt (1,000 kilograms) is equal to 2,204.62 pounds and is equivalent to 1.10231 short tons. In addition, all dollar amounts contained herein are expressed in United States dollars, or US$, except where otherwise stated. References to “A$” are references to Australian dollars, the lawful currency of the Commonwealth of Australia. Some numerical figures included in this Quarterly Report on Form 10-Q have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables may not equal the sum of the figures that precede them.

CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, concerning our business, operations, financial performance and condition, the coal, steel and other industries, the impact of the COVID-19 pandemic and related governmental and economic responses thereto, as well as our plans, objectives and expectations for our business, operations, financial performance and condition. Forward-looking statements may be identified by words such as “may,” “could,” “believes,” “estimates,” “expects,” ~~“likely,~~“intends,” ~~“intends,~~“plans,” “anticipate,” “forecast,” “outlook,” “target,” “likely,” “considers” and other similar words.

Any forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause actual results, performance, events or outcomes to differ materially from the results, performance, events or outcomes expressed or anticipated in these statements, many of which are beyond our control. Such forward-looking statements are based on an assessment of present economic and operating conditions on a number of best estimate assumptions regarding future events and actions. These factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results, our announced plans, including our plan to issue dividends and distributions, or an investment in our securities include, but are not limited to:

 uncertainty ~~and weaknesses~~ in global economic conditions, including the extent, duration and impact ~~on prices caused by reduced demand. The COVID-19 pandemic led to reduced market demand~~of the Russian and Ukraine war, as well as risks related to government actions with respect to trade agreements, treaties or policies;

a decrease in the availability or increase in costs of key supplies, capital equipment or commodities, such as diesel fuel, steel, explosives and tires;

 severe financial hardship, bankruptcy, temporary or permanent shut downs or operational challenges, due to ~~the ongoing COVID-19 pandemic or any similar~~ future public health crisis ~~pandemic~~(such as COVID-19) or ~~epidemic,~~otherwise, of one or more of our major customers, including customers in the steel industry, key suppliers/contractors, which among other adverse effects, could lead to reduced demand for our coal, increased difficulty collecting receivables and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us;

 our ability to generate sufficient cash to service our indebtedness and other obligations;

 our indebtedness and ability to comply with the covenants and other undertakings under the agreements governing such indebtedness;

 our ability to collect payments from our customers depending on their creditworthiness, contractual performance or otherwise;

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 the prices we receive for our coal;

 the demand for steel products, which impacts the demand for our metallurgical, or Met, coals;

 risks inherent to ~~mining;~~mining operations could impact the amount of coal produced, cause delay or suspend coal deliveries, or increase the cost of operating our business;

 the loss of, or significant reduction in, purchases by our largest customers;

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 risks unique to international mining and trading operations, including tariffs and other barriers to trade;

 unfavorable economic and financial market conditions;

 our ability to continue acquiring and developing coal reserves that are economically recoverable;

 uncertainties in estimating our economically recoverable coal reserves;

 transportation for our coal becoming unavailable or uneconomic for our customers;

 the risk that we may be required to pay for unused capacity pursuant to the terms of our take-or-pay arrangements with rail and port operators;

 our ability to retain key personnel and attract qualified personnel;

 any failure to maintain satisfactory labor relations;

 our ability to obtain, renew or maintain permits and consents necessary for our operations;

 potential costs or liability under applicable environmental laws and regulations, including with respect to any exposure to hazardous substances caused by our operations, as well as any environmental contamination our properties may have or our operations may cause;

 extensive regulation of our mining operations and future regulations and developments;

 our ability to provide appropriate financial assurances for our obligations under applicable laws and regulations;

 assumptions underlying our asset retirement obligations for reclamation and mine closures;

 concerns about the environmental impacts of coal combustion, including perceived impacts on global climate issues, which could result in increased regulation of coal combustion in many jurisdictions and divestment efforts affecting the investment community;

 the extensive forms of taxation that our mining operations are subject to, and future tax regulations and developments;

 any cyber-attacks or other security breaches that disrupt our operations or result in the dissemination of proprietary or confidential information about us, our customers or other third parties;

 ~~a decrease in the availability or increase in costs of key supplies, capital equipment or commodities, such as diesel fuel, steel, explosives and tires;~~

the risk that we may not recover our investments in our mining, exploration and other assets, which may require us to recognize impairment charges related to those assets;

 risks related to divestitures and acquisitions;

 the risk that diversity in interpretation and application of accounting principles in the mining industry may impact our reported financial results; and

 other risks and uncertainties detailed ~~in this report,~~herein, including, but not limited to, those discussed in “Risk Factors,” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q.

We make many of our forward-looking statements based on our operating budgets and forecasts, which are based upon detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results.

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See Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC and ASX on February ~~25, 2021, and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021, filed with the SEC and ASX on May 10, 2021,~~22, 2022, for a more complete discussion of the risks and uncertainties mentioned above and for discussion of other risks and uncertainties we face that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.

All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements, as well as others made in this Quarterly Report on Form 10-Q and hereafter in our other filings with the SEC and public

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communications. You should evaluate all forward-looking statements made by us in the context of these risks and uncertainties.

We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to you. You should not interpret the disclosure of any risk to imply that the risk has not already materialized. Furthermore, the forward-looking statements included in this Quarterly Report on Form 10-Q are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by applicable law.

Overview

We are a global producer, marketer and exporter of a full range of Met coal products. We own a portfolio of operating mines and development projects in Queensland, Australia, and in Virginia, West Virginia and Pennsylvania in the United States.

Our Australian Operations comprise the 100%-owned Curragh producing mine complex. Our U.S. Operations comprise two 100%-owned producing mine complexes (Buchanan and Logan), one 100%-owned idled mine complex (Greenbrier), and two development properties ~~(Pangburn-Shaner-Fallowfield~~(Mon Valley and Russell County) ~~and one idle property (Amonate)~~. In addition to Met coal, our Australian Operations sell thermal coal domestically, which is used to generate electricity, to Stanwell and some thermal coal in the export market. Our U.S. Operations primarily ~~focuses~~focus on the production of Met coal for the North American domestic and seaborne export markets and also produce and sell some thermal coal that is extracted in the process of mining Met coal.

For the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, we produced 4.2 MMtand sold ~~13.5~~4.4 MMtof coal. Met coal and thermal coal sales represented ~~82.2%~~ approximately 76.9%and ~~17.8%~~23.1%, respectively, of our total volume of coal sold and ~~94.3%~~approximately 95.2% and ~~5.7%~~4.8% respectively, of total coal revenues, for the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022.

~~During~~Record global prices of coal for the three months ended ~~September 30, 2021, seaborne prices were driven to record highs with both~~March 31, 2022 resulted in the ~~Australian~~highest quarterly revenues and ~~U.S.~~average realized price of Met coal ~~price indices exceeding $400 per Mt as a result~~sold in the history of the ~~following factors: continued strong~~Company. The impact of Russia’s invasion of Ukraine was the primary driver of high coal prices, as sanctions were placed on Russian commodities, making it difficult to trade coal from that market and further tightening the global steel demand; tight Met coal export supply availability from Australia and the U.S.; mine closures due to safety and environmental factors and adverse weather limiting China’s domestic supply; and constrained exports from Mongolia due to COVID-19.supply.

Coronado has continued to take advantage of its unique geographical diversification as a Met coal supplier of scale to meet the requirements of steel customers across the globe. As ~~Chinese import restrictions on Australian coal continue,~~global supply dynamics have changed due to the Russian and Ukraine war, our U.S. Operations have benefited from their ability to export coal to ~~China~~meet supply shortages in ~~a favorable price environment~~Europe at higher prices during the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022.

Our results for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 benefited from higher averaged realized Met coal price, ~~lower capital expenditure across~~partially offset by (1) labor shortages at our ~~business~~Australian Operations and ~~the continued ramp up of production at our~~ U.S. Operations driven by COVID-19 impacts and increased demand ~~from China~~ for skilled labor, (2) higher sales related costs (Stanwell rebate, royalties and freight costs), (3) unplanned maintenance costs incurred at U.S. ~~sourced metallurgical coals.~~

~~Despite these favorable conditions,~~Operations, (4) additional fleets mobilized at our results for the nine months ended September 30, 2021 were adversely impacted by (1) seasonal wet weather conditions in Australia, which disrupted certain mining and logistics activities, (2) operational issues at the Australian Operations ~~due to breakdown of certain mining equipment, (3) cost of additional fleets deployed at Curragh to accelerate overburden removal to increase coal availability, (4) labor shortages due to COVID-19~~ and (5) ~~adverse geological conditions in certain mines of our U.S. Operations.~~inflationary pressure on fuel pricing and labor costs.

Coal revenues from our Australian Operations for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 increased ~~11.6%~~159.9% compared to the same period in, ~~2020,~~2021, driven by increased average realized Met coal pricing from ~~$97.5~~$94.2 to ~~$117.0~~$305.8 per Mt sold. Sales volumes were lower for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to the same period in ~~2020~~2021 primarily due to ~~mine sequencing and equipment maintenance, as well as some sales slippage into the fourth quarter of 2021.~~co-shipping delays at port. Operating costs for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 were ~~$64.8~~$105.8 million, or ~~8.8%~~40.7%, higher compared to the corresponding period in ~~2020~~2021 primarily driven by higher ~~mining~~sales related costs, ~~which together with lower~~additional contractor fleets deployed at Australian Operations to accelerate overburden removal to increase coal ~~sales volume, resulted in an unfavorable increase in operating costs of $14.1 per Mt sold.~~availability and inflationary pressures on fuel pricing and labor costs.

~~From our~~Our U.S. Operations, ~~sales volumes were 0.9 MMt~~ higher ~~for the nine months ended September 30, 2021 compared to the same period in 2020 primarily due to production returning to pre-COVID-19 levels. Higher~~ sales volumes and higher average realized Met coal prices per Mt sold during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 resulted in Coal revenues increasing by ~~$198.9~~$202.6 million, or ~~58.4%~~147.1%, compared to the same period in ~~2020.~~2021. Operating costs for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 were ~~$91.0~~$60.0 million, or ~~31.5%~~58.2% higher, compared to the corresponding period in ~~2020~~2021 driven by higher mining costs, due to impact of inflation on labor and supply costs, royalties, freight and demurrage costs.

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~~Sale of the Amonate Mining Asset~~

On October 26, 2021, we entered into a definitive agreement to sell Amonate, including related assets and liabilities to Ramaco Resources Inc., a Delaware corporation, for a purchase price of $30.0 million, approximately $18.0 million in excess of its carrying value as at September 30, 2021. The net realized gain on completion of this transaction will be included within “Gain on disposal of assets” in our Consolidated Statement of Operations and Comprehensive Income during the fourth quarter of 2021

~~Notes Redemption~~

On October 29, 2021, the Company announced it elected to authorize its wholly-owned subsidiary Coronado Finance Pty Ltd to exercise its optional redemption rights to redeem $35.0 million aggregate principal amount of its Notes. The Notes will be redeemed on November 15, 2021, or the Redemption Date, at a redemption price equal to 103% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on the Notes to, but not including, the Redemption Date in accordance with the terms of the Notes and the Indenture. Interest on the portion of the Notes selected for redemption will cease to accrue on and after the Redemption Date, unless the Company defaults in making the redemption payment.

~~Xcoal~~

During the nine months ended September 30, 2021, Xcoal repaid its past due balance of $85.2 million in full. At September 30, 2021, the Company fully reversed the provision for discounting and credit losses of $9.0 million recorded at December 31, 2020.

~~From July 1, 2021, the Company has agreed credit terms with Xcoal. Any sales in excess of the credit amount will be made on prepayment, letter of credit and cash on delivery basis.~~

~~Refer to Note 6 “Trade and related party receivables” to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.~~

~~Refinancing transaction~~

During the nine months ended September 30, 2021, we successfully completed a refinancing initiative which comprised of an ABL Facility with an aggregate principal amount of $100.0 million, a Notes Offering with an aggregate principal amount of $350.0 million and a fully underwritten equity Entitlement Offer of $101.4 million, that resulted in gross proceeds to the Company of $101.4 million. These transactions provide Coronado increased financial flexibility by eliminating the application of the legacy SFA financial covenants and introducing new debt with terms that are more sustainable for our business. Refer to Note 5 “Capital Structure” and Note 11 “Interest Bearing Liabilities” to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Safety

For our Australian Operations, the twelve-month rolling average Total Reportable Injury Frequency Rate, or TRIFR, at ~~September 30, 2021~~March 31, 2022 was ~~4.00~~3.26 compared to a rate of ~~5.63 at the end of June 30, 2021 and 9.40~~3.07 at the end of December 31, ~~2020.~~2021. At out U.S. Operations, the twelve-month rolling average Total Reportable Incident Rate, or TRIR, at ~~September 30, 2021~~March 31, 2022 was ~~2.28~~1.97 compared to a rate of ~~2.69 at the end of June 30, 2021 and 1.98~~2.51 at the end of December 31, ~~2020.~~2021. Reportable rates for our Australian and U.S. Operations are below the relevant industry benchmarks.

The safety of our workforce is our number one ~~priority. At our Australian Operations, the continued improvement stems from the successes of the Critical Control Management Project at Curragh. This program is~~priority and Coronado remains focused on identifying safety risks and controls that prevent incidents from happening, effectively communicating those controls to the workforce, and validating the controls are in place in the field. In addition, the Australian Operations conducted a series of ‘safety resets’ which were attended by all staff during the September 2021 quarter. At out U.S. Operations our Safety Development Groups have implemented a focused program that has reduced the number of roof bolter incidents during the September 2021 quarter which has directly improved the TRIR.

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During the quarter, our Australian Operations achieved 155 days without a Lost Time Injury, or LTI. This represents the most consecutive days without a LTI since March 2017 and the best result for the Australian Operations under Coronado ownership.

~~COVID-19 response~~

The COVID-19 Steering Committee has successfully monitored the effect of the pandemic across our Australian Operations and U.S. Operations and continues to implement proactive preventative measures to ensure the safety and ~~well-being~~wellbeing of all employees and contractors. During the three months ended September 30, 2021, we implemented a Vaccine Incentive Program at our U.S. Operations that provides a cash payment to employees who get vaccinated. Since the program commenced, vaccination rates amongst our U.S. workforce has improved significantly. At our Australian Operations, vaccination rates continue to increase according to the Australian Federal and Queensland state government’s vaccination program. The COVID-19 Steering Committee continues to encourage all workers across all jurisdictions to be vaccinated and provides access to educational materials about vaccine safety and efficacy.contracting parties.

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 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) total sales volumes and average realized price per Mt sold, which we define as total coal revenues divided by total sales volume; (iii) Met coal sales volumes and average realized Met coal price per Mt sold, which we define as Met coal revenues divided by Met coal sales volume; (iv) 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; and (v) average segment operating costs per Mt sold, which we define as segment operating costs divided by sales volumes for the respective segment.

Coal revenues are shown on our statement 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. ~~The majority of~~Sales to the export ~~sales~~market from our U.S. Operations are generally recognized ~~at the mine load out~~ when title to the coal passes to the customer at the mine load out similar to a domestic sale. However, for certain U.S. export sales title passes to the customer when the coal is loaded into the vessel at the port, accordingly we bear the cost of freight from our mines to the applicable outbound shipping port as well as the port costs. For our domestic sales, customers typically bear the cost of ~~freight, therefore there are no~~freight. As such, freight expenses ~~included in the~~are excluded from cost of coal ~~revenues.~~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 and mining costs, which are financial measures not recognized in accordance with U.S. GAAP. Non-GAAP financial measures, including Adjusted EBITDA, are used by investors to measure our operating performance.

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.

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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 financial statements such as investors, industry analysts and lenders to assess the operating performance of the business.

Mining costs, a non-GAAP measure, is based on 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 mine. Mining costs excludes these cost

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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 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.

Three Months Ended ~~September 30, 2021~~March 31, 2022 Compared to Three Months Ended ~~September 30, 2020~~March 31, 2021

Summary

The financial and operational highlights for the three months ended ~~September 30, 2021~~March 31, 2022 include:

 Sales volume totaled ~~4.6~~4.4 MMt for the three months ended ~~September 30, 2021, compared to 4.9 MMt for~~March 31, 2022, and was consistent with the three months ended September 30, 2020. The lower sales volumes were attributable to our Australian Operations due to lower production as a result of changes in mine sequencing and equipment maintenance, and sales slippage into the December 2021 quarter. Our U.S. Operations continue to experience increased demand from China and has recovered its mining operations to pre-COVID-19 pandemic levels resulting in higher sales volumes in the quarter.March 31, 2021.

 Net income increased by ~~$123.8~~$310.9 million, from a net loss of ~~$41.8~~$41.0 million for the three months ended ~~September 30, 2020,~~March 31, 2021, to a net income of ~~$82.0~~$269.9 million for the three months ended ~~September 30, 2021.~~March 31, 2022. This increase was primarily driven by higher coal sales revenues partially offset by higher operating costs, interest charges and income tax expense.

 ~~Strong demand and higher average prices in~~Tight global coal supply, exacerbated by the ~~seaborne export markets, due to better than expected post pandemic recovery in global economic and industrial activity, combined with shortages in~~impact of the ~~coal supply,~~Russian invasion of Ukraine, caused the coal price indices to reach record levels in the ~~quarter. This has contributed to higher~~quarter resulting in the highest quarterly average realized Met coal pricing of ~~$144.0 per Mt sold, which was 67.4% higher compared to $86.0~~$266.5 per Mt sold for the three months ended ~~September 30, 2020.~~March 31, 2022, which was 182.6% higher compared to $94.3 per Mt sold for the same period in 2021.

 Adjusted EBITDA for the three months ended ~~September 30, 2021~~March 31, 2022 of ~~$147.7~~ $411.0million, an increase of ~~$138.2~~$403.3 million ~~from an Adjusted EBITDA of $9.6~~compared to $7.6 million for the three months ended ~~September 30, 2020,~~March 31, 2021, driven by higher coal sales revenues, partially offset by higher operating costs.

 Cash provided by operating activities was $171.8 million for the three months ended March 31, 2022, an increase of $166.6 million compared to $5.2 million compared to the same period in 2021.

As of ~~September 30, 2021,~~March 31, 2022, the Company had total available liquidity of ~~$295.7~~$671.2 million, consisting of ~~$195.7~~$571.2 million cash (excluding restricted cash) and $100.0 million of availability under the ABL Facility. The ABL Facility is subject to a springing fixed charge coverage ratio test if availability is less than a certain amount.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20222720

Table of Contents

	Three months ended September 30,							Three months ended March 31,
		2021		2020		Change	%		2022		2021		Change	%
	(in US$ thousands)							(in US$ thousands)
Revenues:
Coal revenues	$	563,287	$	366,737	$	196,550	53.6%	$	936,628	$	367,202	$	569,426	155.1%
Other revenues		10,304		9,648		656	6.8%		10,497		8,909		1,588	17.8%
Total revenues		573,591		376,385		197,206	52.4%		947,125		376,111		571,014	151.8%
Costs and expenses:
Cost of coal revenues (exclusive of items shown separately below)		309,513		263,858		45,655	17.3%		357,500		274,103		83,397	30.4%
Depreciation, depletion and amortization		38,461		48,693		(10,232)	(21.0%)		38,009		53,081		(15,072)	(28.4%)
Freight expenses		58,043		50,590		7,453	14.7%		59,264		52,141		7,123	13.7%
Stanwell rebate		12,274		25,157		(12,883)	(51.2%)		29,053		15,819		13,234	83.7%
Other royalties		39,099		21,697		17,402	80.2%		83,032		20,947		62,085	296.4%
Selling, general, and administrative expenses		8,044		6,785		1,259	18.6%		7,876		5,775		2,101	36.4%
Total costs and expenses		465,434		416,780		48,654	11.7%		574,734		421,866		152,868	36.2%
Operating income (loss)		108,157		(40,395)		148,552	(367.7%)
Other income (expenses):
Interest expense, net		(18,251)		(12,207)		(6,044)	49.5%		(17,332)		(15,135)		(2,197)	14.5%
Decrease in provision for discounting and credit losses		2,430		—		2,430	100.0%
(Increase) decrease in provision for discounting and credit losses									(428)		3,778		(4,206)	(111.3%)
Other, net		(1,252)		(361)		(891)	246.8%		(2,790)		(2,928)		138	(4.7%)
Total other expense, net		(17,073)		(12,568)		(4,505)	35.8%		(20,550)		(14,285)		(6,265)	43.9%
Net income (loss) before tax		91,084		(52,963)		144,047	(272.0%)		351,841		(60,040)		411,881	(686.0%)
Income tax (expense) benefit		(9,096)		11,169		(20,265)	(181.4%)		(81,943)		19,068		(101,011)	(529.7%)
Net income (loss)		81,988		(41,794)		123,782	(296.2%)		269,898		(40,972)		310,870	(758.7%)
Less: Net loss attributable to noncontrolling interest		—		(2)		2	(100.0%)		—		(2)		2	(100.0%)
Net income (loss) attributable to Coronado Global Resources, Inc.	$	81,988	$	(41,792)	$	123,780	(296.2%)	$	269,898	$	(40,970)	$	310,868	(758.8%)

Coal Revenues

Coal revenues were ~~$563.3~~ $936.6million for the three months ended ~~September 30, 2021,~~March 31, 2022, an increase of ~~$196.6~~ $569.4million, compared to ~~$366.7~~$367.2 million for the three months ended ~~September 30, 2020. This increase was largely driven~~March 31, 2021. Tight global coal supply, exacerbated by ~~higher~~the impact of the Russian invasion of Ukraine, caused the coal price indices to reach record levels in the quarter resulting in the highest quarterly average realized Met coal ~~price~~pricing of $266.5 per Mt sold for the three months ended ~~September 30, 2021, of $144.0 per Mt sold, an increase of $58.0 per Mt sold~~March 31, 2022, which was 182.6% higher compared to ~~$86.0~~$94.3 per Mt sold for the same period in ~~2020. At our U.S. Operations coal~~2021. This increase was partially offset by lower Met sales volume ~~was 0.5~~of 3.3 MMt ~~higher compared to~~for the three months ended ~~September 30,~~March 31, 2022, compared to 3.6 MMt in 2021 ~~driven by increased demand from China for U.S. sourced coal.~~primarily due to co-shipping delays at port.

Cost of Coal Revenues (Exclusive of Items Shown Separately Below)

Cost of coal revenues comprise 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 includes employee-related costs, materials and supplies, contractor services, coal handling and preparation costs and production taxes. Total cost of coal revenues was $309.5 million for the three months ended September 30, 2021, an increase of $45.7 million, or 17.3%, compared to $263.9 million for the three months ended September 30, 2020.

The cost of coal revenues for our U.S. Operations increased $35.6 million during the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, due to higher sales and production volumes. Cost of coal revenues for our Australian Operations for the three months ended September 30, 2021 were $10.1 million higher compared to the three months ended September 30, 2021, as a result of changes in mine sequencing works during the quarter to increase coal availability and planned equipment maintenance.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~28

~~Table of Contents~~

~~Depreciation, Depletion and Amortization~~

Depreciation, depletion and amortization for the three months ended September 30, 2021 was $38.5 million, a decrease of 21.0% compared to $48.7 million for the three months ended September 30, 2020. The decrease was associated with lower production in our Australian Operations impacting assets depreciated under units of production method. In addition, depreciation on the Greenbrier mining asset at our U.S. Operations ceased since its idling on April 1, 2020.

~~Freight Expenses~~

Freight expenses include costs associated with take-or-pay commitments for rail and port providers and demurrage costs. Freight expenses totaled $58.0 million for the three months ended September 30, 2021, an increase of $7.5 million, as compared to $50.6 million for the three months ended September 30, 2020. Our U.S. Operations’ freight cost contributed $11.6 million to the increase, driven by coal sales under certain contracts for which we arrange and pay for transportation to port that did not exist to the same extent in the three months ended September 30, 2020. This increase was partially offset by our Australian Operations where freight costs were lower as a result of lower sales volumes during the three months ended September 30, 2021, compared to 2020.

~~Stanwell Rebate~~

The Stanwell rebate was $12.3 million for the three months ended September 30, 2021, a decrease of $12.9 million, as compared to $25.2 million for the three months ended September 30, 2020. The decrease was largely driven by lower sales volume and lower realized export reference coal pricing for the prior twelve-month period used to calculate the rebate.

~~Other Royalties~~

Other royalties were $39.1 million in the three months ended September 30, 2021, an increase of $17.4 million, as compared to $21.7 million in the three months ended September 30, 2020. The increase in other royalties were driven by higher coal revenues compared to the same period in 2020.

~~Interest Expense, net~~

Interest expense, net of $18.3 million for the three months ended September 30, 2021, increased $6.0 million, as compared to $12.2 million for the three months ended September 30, 2020. The increase in interest expense was due to higher interest rate on the Notes for the three months ended September 30, 2021, compared to average interest rate on the SFA for the same period in 2020.

~~Decrease in provision for discounting and credit losses~~

We recognized a provision for discounting and credit losses of $9.3 million as at December 31, 2020, largely in respect of past due trade receivables from Xcoal. During the three months ended September 30, 2021, the provision for discounting and credit losses, with respect to Xcoal past due balance, was fully unwound to account for passage of time and repayment in full, resulting in a benefit of $3.1 million recorded in the Company’s results of operations.

~~Income tax (expense) benefit~~

Income tax expense of $9.1 million for the three months ended September 30, 2021 increased by $20.3 million, as compared to a tax benefit of $11.2 million for the three months ended September 30, 2020.

~~The income tax expense for the three months ended September 30, 2021 is based on an annual effective tax rate of 11.28% applied to the nine months ended September 30, 2021.~~

~~Nine months ended September 30, 2021 Compared to Nine months ended September 30, 2020~~

~~Summary~~

~~The financial and operational highlights for the nine months ended September 30, 2021 include:~~

Sales volume totaled 13.5 MMt for the nine months ended September 30, 2021, or 0.3 MMt higher than the nine months ended September 30, 2020. The higher sales volumes were primarily driven by our U.S. Operations resulting from increased demand of U.S. sourced coal into China and recovery in demand for Met coal to pre-COVID 19 pandemic levels compared to the same period in 2020 when our U.S. Operation were idled for two months.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~29

~~Table of Contents~~

Net loss decreased by $150.9 million, from $165.0 million for the nine months ended September 30, 2020, to $14.1 million for the nine months ended September 30, 2021. The lower net loss was primarily due to higher coal sales revenues, partially offset by increase in operating costs, higher interest expenses, the impact of non-cash impairment charge at Greenbrier recognized during the nine months ended September 30, 2020 and higher income tax expense.

Improved coal market prices during the nine months ended September 30, 2021 resulted in average realized Met coal pricing of $114.6 per Mt sold, 23.1% higher compared to $93.1 per Mt sold for the nine months ended September 30, 2020.

Adjusted EBITDA for the nine months ended September 30, 2021, was $173.4 million, an increase of $128.9 million, from Adjusted EBITDA of $44.5 million for the nine months ended September 30, 2020, driven by higher coal revenues partially offset by higher operating costs.

Cash provided by operating activities was $171.1 million for the nine months ended September 30, 2021, an increase of $209.2 million compared to cash used of $38.1 million for the nine months ended September 30, 2020.

As of September 30, 2021, the Company had cash (excluding restricted cash) of $195.7 million and $350.0 million of Notes outstanding resulting in net debt of $154.3 million. Net debt reduced by $82.0 million during the quarter due to positive operating cash flows.

Nine months ended September 30,

2021

2020

Change

%

(in US$ thousands)
Revenues:

Coal revenues

$
1,344,253

$
1,061,554

$
282,699

26.6%
Other revenues

29,705

28,497

1,208

4.2%
Total revenues

1,373,958

1,090,051

283,907

26.0%
Costs and expenses:

Cost of coal revenues (exclusive of items shown separately below)

889,771

745,203

144,568

19.4%
Depreciation, depletion and amortization

132,754

135,542

(2,788)

(2.1%)
Freight expenses

166,090

133,475

32,615

24.4%
Stanwell rebate

43,169

82,571

(39,402)

(47.7%)
Other royalties

83,219

65,151

18,068

27.7%
Selling, general, and administrative expenses

21,250

20,138

1,112

5.5%
Restructuring costs

2,300

—

2,300

100.0%
Total costs and expenses

1,338,553

1,182,080

156,473

13.2%
Operating income (loss)

35,405

(92,029)

127,434

(138.5%)
Other income (expenses):

Interest expense, net

(49,982)

(36,528)

(13,454)

36.8%
Loss on debt extinguishment

(5,744)

—

(5,744)

100.0%
Decrease in provision for discounting and
credit losses

8,074

—

8,074

100.0%
Impairment of assets

—

(63,111)

63,111

(100.0%)
Other, net

(3,610)

(4,846)

1,236

(25.5%)
Total other expense, net

(51,262)

(104,485)

53,223

(50.9%)
Net (loss) income before tax

(15,857)

(196,514)

180,657

(91.9%)
Income tax benefit

1,788

31,525

(29,737)

(94.3%)
Net (loss) income

(14,069)

(164,989)

150,920

(91.5%)
Less: Net loss attributable to noncontrolling interest

(2)

(6)

4

(66.7%)
Net (loss) income attributable to Coronado Global Resources, Inc.

$
(14,067)

$
(164,983)

$
150,916

(91.5%)

~~Coal Revenues~~

Coal revenues were $1,344.3 million for the nine months ended September 30, 2021, an increase of $282.7 million, compared to $1,061.6 million for the nine months ended September 30, 2020. This increase was driven by higher sales volumes at our U.S. Operations and increased average realized Met coal price for the nine months to September 30, 2021 of $114.6 per Mt sold, an increase of $21.5 per Mt sold compared to $93.1 per Mt sold for the same period in 2020, , due to favorable market conditions and higher index prices, most significantly in the third quarter of 2021.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~30

~~Table of Contents~~

~~Cost of Coal Revenues (Exclusive of Items Shown Separately Below)~~

~~Cost of coal revenues is 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 includes employee-related costs, materials and supplies, contractor services, coal handling and preparation costs and production taxes.

Total cost of coal revenues was ~~$889.8~~ $357.5million for the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, an increase of ~~$144.6~~$83.4 million, or ~~19.4%~~30.4%,compared to ~~$745.2~~$274.1 million for the ~~nine~~three months ended ~~September 30, 2020. Cost~~March 31, 2021.

Our U.S. Operations contributed $40.8 million to the increase in total cost of coal revenues, ~~for our U.S. Operations~~driven by impact of inflation on labor and supply costs, unplanned maintenance costs and increased $55.9 million due to higher sales volumes and operations returning to pre-COVID-19 pandemic levels, whereas the U.S. Operations were idled for two months during the nine months ended September 30, 2020.purchased coal transactions. Cost of coal revenues for our Australian Operations ~~increased by $88.7~~for the three months ended March 31, 2022, were $42.6 million higher compared to three months ended March 31, 2021, driven by ~~the impacts of seasonal wet weather, equipment breakdown,~~ additional ~~fleet~~contractor fleets mobilized to accelerate overburden removal to increase coal availability, inflationary pressure on fuel pricing and ~~unfavorable~~labor costs and increased purchased coal transactions, partially offset by favorable average foreign exchange rate on translation of the Australian Operations for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022, of A$/US$: ~~0.76~~0.72 compared to ~~0.68~~0.77 for the same period in ~~2020.~~2021.

Coronado Global Resources Inc. Form 10-Q March 31, 202221

Table of Contents

Depreciation, Depletion and Amortization

Depreciation, depletion and amortization for the three months ended March 31, 2022 was ~~$132.8~~$38.0 million, 28.4% lower compared to $53.1 million for the ~~nine~~three months ended ~~September 30, 2021, a decrease of $2.8 million, as compared to $135.5 million for the nine months ended September 30, 2020.~~March 31, 2021. The ~~decrease~~lower depreciation was associated with favorable average foreign exchange rate on translation of the Australian Operations, lower production in our Australian Operations impacting assets depreciated under units of production ~~method. In addition, depreciation on the Greenbrier mining asset at our U.S. Operations ceased~~method and assets that became retired since ~~its idling on April 1, 2020.~~March 31, 2021.

Freight Expenses

Freight expenses include costs associated with take-or-pay commitments for rail and port providers and demurrage costs. Freight expenses totaled ~~$166.1~~$59.3 millionfor the three months ended March 31, 2022, an increase of $7.1 million, compared to $52.1 million for the ~~nine~~three months ended ~~September 30, 2021, an increase of $32.6 million, compared to $133.5 million for the nine months ended September 30, 2020.~~March 31, 2021. Our U.S. ~~Operations~~Operations’ freight cost contributed $10.5 million to ~~$24.9 million of the~~this increase, ~~due to higher~~driven by coal sales ~~volume related to~~under certain contracts for which we arrange and pay for transportation to port that did not exist to the same extent induring the ~~nine~~three months ended ~~September 30, 2020. The remaining~~March 31, 2021 and higher demurrage costs. This increase ~~relates to~~was partially offset by our Australian Operations ~~primarily driven by unfavorable~~where freight costs were lower as a result of favorable average foreign exchange ~~rate.~~rate on translation of the Australian Operations and lower export sales volumes during the three months ended March 31, 2022, compared to 2021.

Stanwell Rebate

The Stanwell rebate was ~~$43.2~~$29.1 million for the ~~nine~~three months ended ~~September 30, 2021, a decrease~~March 31, 2022, an increase of ~~$39.4~~$13.2 million, as compared to ~~$82.6~~$15.8 million for the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021. The ~~decrease~~increase was largely driven by ~~lower~~higher realized export reference coal pricing for the prior twelve-month period ~~partially offset by unfavorable average foreign exchange rate on translation of~~used to calculate the ~~Australian Operations.~~rebate.

Other Royalties

Other royalties were ~~$83.2~~$83.0 million ~~for~~in the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, an increase of ~~$18.1~~$62.1 million, as compared to ~~$65.2~~$20.9 million for the ~~nine~~three months ended ~~September 30, 2020. Higher~~March 31, 2021. The increase in other royalties ~~were a product of~~was driven by higher ~~average realized export pricing and higher volumes for the nine months period ended September 30, 2021~~coal revenues compared to the same period in ~~2020.~~2021.

Interest Expense, net

Interest expense, net of ~~$50.0~~$17.3 million for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022, increased ~~$13.5~~$2.2 million, as compared to ~~$36.5~~$15.1 million for the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021. The increase in interest expense was due to a higher interest rate on the Notes for the three months ended March 31, 2022, compared to average interest rate ~~for~~on the ~~nine months ended September 30, 2021, compared to~~previous Multicurrency Revolving Syndicated Facility Agreement for the same period in ~~2020, partially offset by lower average interest-bearing liabilities period-over-period.~~

~~Decrease in provision for discounting and credit losses~~

We recognized a provision for discounting and credit losses of $9.3 million as at December 31, 2020, largely in respect of past due trade receivables from Xcoal. During the nine months ended September 30, 2021, the provision for discounting and credit losses, with respect to Xcoal past due balance, was fully unwound to account for passage of time and repayment in full, resulting in a benefit of $9.0 million recorded in the Company’s results of operations.2021.

Income tax (expense) benefit

Income tax ~~benefit~~expense of ~~$1.8~~$81.9 million for the ~~nine~~three months ended ~~September 30, 2021 decreased~~March 31, 2022 increased by ~~$29.7~~$101.0 million, as compared to ~~$31.5~~a tax benefit of $19.1 million for the ~~nine~~three months ended ~~September 30, 2020. The decrease includes a valuation allowance of $19.8 million recognized during the period against deferred tax assets of our Australian Operations.~~March 31, 2021.

The income tax ~~benefit~~expense for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 is based on an annual effective tax rate of ~~11.28%, a decrease from 16.04% for~~23.3% applied to the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2022, which has been favorably impacted by mine depletion in the United States.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20223122

Table of Contents

Supplemental Segment Financial Data

Three months ended ~~September 30, 2021~~March 31, 2022 compared to three months ended ~~September 30, 2020~~March 31, 2021

Australia

	Three months ended September 30,				Three months ended March 31,
	2021	2020	Change	%	2022	2021	Change	%
	(in US$ thousands)				(in US$ thousands)
Sales volume (MMt)	2.8	3.6	(0.8)	(23.4)%	2.8	2.9	(0.1)	(5.2)%
Total revenues ($)	342,372	271,413	70,959	26.1%	605,298	238,293	367,005	154.0%
Coal revenues ($)	332,558	262,491	70,067	26.7%	596,298	229,450	366,848	159.9%
Average realized price per Mt sold ($/Mt)	119.7	72.4	47.3	65.3%	214.1	78.1	136.0	174.1%
Met sales volume (MMt)	2.0	2.7	(0.7)	(26.3)%	1.8	2.2	(0.4)	(17.4)%
Met coal revenues ($)	306,033	233,063	72,970	31.3%	554,009	206,452	347,557	168.3%
Average realized Met price per Mt sold ($/Mt)	154.9	86.9	68.0	78.3%	305.8	94.2	211.6	224.6%
Mining costs ($)	180,837	176,706	4,131	2.3%	202,018	178,977	23,041	12.9%
Mining cost per Mt sold ($/Mt)	67.4	49.9	17.5	35.1%	76.1	62.9	13.2	21.0%
Operating costs ($)	275,784	270,430	5,354	2.0%	365,707	259,862	105,845	40.7%
Operating costs per Mt sold ($/Mt)	99.2	74.6	24.6	33.0%	131.3	88.5	42.8	48.4%
Segment Adjusted EBITDA ($)	67,383	2,144	65,239	3,042.9%	238,968	(23,059)	262,027	(1,136.3)%

Coal revenues for Australian Operations for the three months ended ~~September 30, 2021~~March 31, 2022 were ~~$332.6~~$596.3 million, an increase of ~~$70.1~~$366.8 million or ~~26.7%~~159.9%, compared to ~~$262.5~~$229.5 million for the three months ended ~~September 30, 2020.~~March 31, 2021. This increase was largely driven by higher average realized Met coal pricing ~~as a result~~driven by the impact of the war in Ukraine which saw significant purchases of non-Russian coal following sanctions, trade finance problems and seaborne logistical constraints, continued strong demand from destination markets other than China, which continues to restrict importation of Australian coal, and tight supply in the global market. The average realized Met coal price for the quarter ended ~~September 30, 2021~~March 31, 2022 was ~~$154.9~~$305.8 per Mt sold, ~~$68.0~~$211.6 per Mt sold higher compared to the same quarter last year. Sales volume of 2.8 MMt decreased by ~~0.8~~0.1 MMt compared to ~~3.6~~2.9 MMt for the three months ended ~~September 30, 2020,~~March 31, 2021, driven mainly by ~~lower production and sales slippage into the fourth quarter.~~co-shipping delays.

Operating costs increased by ~~$5.4~~$105.8 million, or ~~2.0%~~40.7%, for the three months ended ~~September 30, 2021,~~March 31, 2022, compared to the three months ended ~~September 30, 2020.~~March 31, 2021. The increase was driven by higher mining costs, ~~and~~ other royalties ~~partially offset by lower freight~~ and Stanwell rebate (mainly due to ~~lower~~higher realized coal ~~pricing on a twelve-month look back).~~pricing), partially offset by lower freight. Mining cost per ton of ~~$67.4~~$76.1 per Mt sold for the three months ended ~~September 30, 2021~~March 31, 2022 was ~~35.1%~~21.0% higher compared to the three months ended ~~September 30, 2020,~~March 31, 2021, impacted by ~~low~~inflationary impact on fuel prices, increase in purchased coal ~~availability primarily from changes in mine sequencing during the quarter planned to improve future coal availability.~~and additional contractor fleets mobilized at our Australian Operations.

Segment Adjusted EBITDA of ~~$67.4~~$239.0 million for the three months ended ~~September 30, 2021~~March 31, 2022 increased by ~~$65.2~~$262.0 million compared to ~~$2.1~~Segment Adjusted EBITDA loss of $23.1 million for the three months ended ~~September 30, 2020,~~March 31, 2021. This increase was primarily driven by higher coal revenues partially offset by ~~increase in~~higher operating costs.

United States

	Three months ended September 30,				Three months ended March 31,
	2021	2020	Change	%	2022	2021	Change	%
	(in US$ thousands)				(in US$ thousands)
Sales volume (MMt)	1.8	1.3	0.5	42.9%	1.6	1.5	0.1	6.5%
Total revenues ($)	231,219	104,972	126,247	120.3%	341,827	137,818	204,009	148.0%
Coal revenues ($)	230,729	104,246	126,483	121.3%	340,330	137,752	202,578	147.1%
Average realized price per Mt sold ($/Mt)	128.7	83.1	45.6	54.9%	217.0	93.6	123.4	131.8%
Met sales volume (MMt)	1.7	1.2	0.5	41.0%	1.5	1.4	0.1	5.9%
Met coal revenues ($)	228,561	103,401	125,160	121.0%	337,720	136,984	200,736	146.5%
Average realized Met price per Mt sold ($/Mt)	131.6	84.0	47.6	56.7%	220.0	94.5	125.5	132.8%
Mining costs ($)	109,385	81,249	28,136	34.6%	115,263	89,206	26,057	29.2%
Mining cost per Mt sold ($/Mt)	62.7	64.8	(2.1)	(3.2)%	76.7	60.7	16.0	26.4%
Operating costs ($)	143,145	90,872	52,273	57.5%	163,142	103,149	59,993	58.2%
Operating costs per Mt sold ($/Mt)	79.9	72.4	7.5	10.4%	104.0	70.1	33.9	48.4%
Segment Adjusted EBITDA ($)	88,441	14,413	74,028	513.6%	179,899	36,530	143,369	392.5%

Coal revenues increased by $126.5 million, or 121.3%, to $230.7 million for the three months ended September 30, 2021 compared to $104.2 million for the three months ended September 30, 2020. This increase was largely driven by higher Met

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20223223

Table of Contents

Coal revenues increased by $202.6 million, or 147.1%, to $340.3 million for the three months ended March 31, 2022 compared to $137.8 million for the three months ended March 31, 2021. This increase was largely driven by higher average realized Met coal pricing for the three months ended March 31, 2022 of $220.0 per Mt sold, compared to $94.5 per Mt sold for the same period in 2021, combined with an increase of 0.1 MMt in Met coal sales ~~volumes~~volume in the 2022 quarter ~~ended September 30, 2021 of 0.5 MMt,~~ driven by strong U.S. sourced coal demand, particularly into ~~China, exceeding pre-COVID-19 pandemic levels.~~China. As the import restrictions on Australian coal continue, our U.S. Operations have benefited from their ability to export coal to China in the current elevated price environment resulting in average realized Met coal pricing for the three months ended September 30, 2021 of $131.6 per Mt sold, $47.6 per Mt or 56.7% higher compared to $84.0 per Mt sold for the same period in 2020.environment.

Operating costs increased by ~~$52.3~~$60.0 million, or ~~57.5%~~58.2%, to ~~$143.1~~ $163.1million for the three months ended ~~September 30, 2021,~~March 31, 2022, compared to operating costs of ~~$90.9~~$103.1 million for the three months ended ~~September 30, 2020.~~March 31, 2021. The increase was due to higher mining costs of ~~$28.1~~$26.1 million, as a result of ~~higher sales~~increase in purchase coal and ~~production volumes, combined with higher freight expenses.~~subcontractor’s cost due to labor shortages.

Segment Adjusted EBITDA of ~~$88.4~~$179.9 million for the three months ended ~~September 30, 2021~~March 31, 2022 increased by ~~$74.0~~$143.4 million compared to ~~$14.4~~$36.5 million for the three months ended ~~September 30, 2020,~~March 31, 2021, driven by increased sales volume and higher average realized Met coal pricing, partially offset by higher operating costs.

Corporate and Other Adjusted EBITDA

The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

	Three months ended September 30,							Three months ended March 31,
		2021		2020		Change	%		2022		2021		Change	%
	(in US$ thousands)							(in US$ thousands)
Selling, general, and administrative expenses	$	8,042	$	6,785	$	1,257	18.5%	$	7,876	$	5,775	$	2,101	36.4%
Other, net		42		221		(179)	n/m		4		55		(51)	n/m
Total Corporate and Other Adjusted EBITDA	$	8,084	$	7,006	$	1,078	15.4%	$	7,880	$	5,830	$	2,050	35.2%

n/m – Not meaningful for comparison.

Corporate and other costs increased ~~$1.1~~$2.0 million to ~~$8.1~~$7.9 million for the three months ended ~~September 30, 2021,~~March 31, 2022, as compared to ~~$7.0~~$5.8 million for the three months ended ~~September 30, 2020.~~March 31, 2021. The increase in selling, general, and administrative expenses was primarily driven by corporate activities partially resuming to pre-COVID-19 levels and timing of certain corporate costs.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20223324

Table of Contents

Mining and operating costs for the three months ended ~~September 30, 2021~~March 31, 2022 compared to three months ended ~~September 30, 2020~~March 31, 2021

A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown below:

	Three months ended September 30, 2021								Three months ended March 31, 2022
	(in US$ thousands)								(in US$ thousands)
		Australia		United States		Other / Corporate		Total Consolidated		Australia		United States		Other / Corporate		Total Consolidated
Total costs and expenses	$	294,219	$	162,866	$	8,349	$	465,434	$	384,380	$	182,183	$	8,171	$	574,734
Less: Selling, general and administrative expense		—		—		(8,044)		(8,044)		—		—		(7,876)		(7,876)
Less: Restructuring costs		—		—		—		—		—		—		—		—
Less: Depreciation, depletion and amortization		(18,435)		(19,721)		(305)		(38,461)		(18,673)		(19,041)		(295)		(38,009)
Total operating costs		275,784		143,145		—		418,929		365,707		163,142		—		528,849
Less: Other royalties		(30,835)		(8,264)		—		(39,099)		(69,692)		(13,340)		—		(83,032)
Less: Stanwell rebate		(12,274)		—		—		(12,274)		(29,053)		—		—		(29,053)
Less: Freight expenses		(39,974)		(18,069)		—		(58,043)		(39,767)		(19,497)		—		(59,264)
Less: Other non-mining costs		(11,864)		(7,427)		—		(19,291)		(25,177)		(15,042)		—		(40,219)
Total mining costs		180,837		109,385		—		290,222		202,018		115,263		—		317,281
Sales Volume excluding non-produced coal (MMt)		2.7		1.7		—		4.4		2.7		1.5		—		4.2
Mining cost per Mt sold ($/Mt)		67.4		62.7		—		65.6		76.1		76.7		—		76.3

	Three months ended September 30, 2020								Three months ended March 31, 2021
	(in US$ thousands)								(in US$ thousands)
		Australia		United States		Other / Corporate		Total Consolidated		Australia		United States		Other / Corporate		Total Consolidated
Total costs and expenses	$	296,737	$	113,056	$	6,987	$	416,780	$	287,749	$	128,163	$	5,954	$	421,866
Less: Selling, general and administrative expense		—		—		(6,785)		(6,785)		—		(1)		(5,774)		(5,775)
Less: Depreciation, depletion and amortization		(26,307)		(22,184)		(202)		(48,693)		(27,887)		(25,013)		(181)		(53,081)
Total operating costs		270,430		90,872		—		361,302		259,862		103,149		(1)		363,010
Less: Other royalties		(18,496)		(3,201)		—		(21,697)		(16,265)		(4,682)		—		(20,947)
Less: Stanwell rebate		(25,157)		—		—		(25,157)		(15,819)		—		—		(15,819)
Less: Freight expenses		(44,168)		(6,422)		—		(50,590)		(43,134)		(9,007)		—		(52,141)
Less: Other non-mining costs		(5,903)		—		—		(5,903)		(5,667)		(254)		—		(5,921)
Total mining costs		176,706		81,249		—		257,955		178,977		89,206		(1)		268,182
Sales Volume excluding non-produced coal (MMt)		3.5		1.3		—		4.8		2.8		1.5		—		4.3
Mining cost per Mt sold ($/Mt)		49.9		64.8		—		53.8		62.9		60.7		—		62.2

Average realized Met coal revenue for the three months ended ~~September 30, 2021~~March 31, 2022 compared to three months ended ~~September 30, 2020~~March 31, 2021

A reconciliation of the Company’s average realized Met coal revenue is shown below:

Three months ended September 30,

2021

2020

Change

%

(in US$ thousands)
Met sales volume (MMt)

3.7

3.9

(0.2)

(5.1)%
Met coal revenues ($)

534,594

336,464

198,130

58.9%
Average realized Met price per Mt sold ($/Mt)

144.0

86.0

58.0

67.5%

	Three months ended March 31,
	2022	2021	Change	%
	(in US$ thousands)
Met sales volume (MMt)	3.3	3.6	(0.3)	(8.1)%
Met coal revenues ($)	891,729	343,436	548,293	159.6%
Average realized Met price per Mt sold ($/Mt)	266.5	94.3	172.2	182.6%

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20223425

Table of Contents

~~Nine months ended September 30, 2021 compared to Nine months ended September 30, 2020~~

~~Australia~~

Nine months ended September 30,

2021

2020

Change

%

(in US$ thousands)
Sales volume (MMt)

8.5

9.2

(0.7)

(7.5)%
Total revenues ($)

832,098

744,968

87,130

11.7%
Coal revenues ($)

804,757

720,972

83,785

11.6%
Average realized price per Mt sold ($/Mt)

94.5

78.3

16.2

20.7%
Met sales volume (MMt)

6.3

6.6

(0.3)

(4.5)%
Met coal revenues ($)

734,143

640,893

93,250

14.6%
Average realized Met price per Mt sold ($/Mt)

117.0

97.5

19.5

20.0%
Mining costs ($)

535,568

475,547

60,021

12.6%
Mining cost per Mt sold ($/Mt)

65.7

52.4

13.3

25.4%
Operating costs ($)

801,837

737,033

64,804

8.8%
Operating costs per Mt sold ($/Mt)

94.1

80.0

14.1

17.6%
Segment Adjusted EBITDA ($)

30,445

8,406

22,039

262.2%

Coal revenues for Australian Operations for the nine months ended September 30, 2021 were $804.8 million, an increase of $83.8 million, or 11.6%, compared to $721.0 million for the nine months ended September 30, 2020. This increase was largely driven by higher average realized Met price of $117.0 per Mt, an increase of $19.5 per Mt, as compared to $97.5 per Mt sold during the same period in 2020 benefiting from strong demand and supply shortage in the global seaborne export markets. This increase was partially offset by lower sales volume of 8.5 MMt compared to 9.2 MMt for the nine months ended September 30, 2020 due to lower production combined with sales slippage into the fourth quarter of 2021.

Operating costs increased by $64.8 million, or 8.8%, for the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020. The increase was driven by higher mining costs, other royalties and freight costs, partially offset by lower Stanwell rebate (mainly due to lower realized coal pricing on a twelve-month look back period). Mining cost per ton of $65.7 per Mt sold was 25.5% higher compared to the nine months ended September 30, 2020, impacted by higher seasonal wet weather, mine equipment breakdown, planned equipment maintenance, additional fleet mobilized to accelerate overburden removal and unfavorable average foreign exchange rate on translation of the Australian Operations for the nine months ended September 30, 2021 of A$/US$: 0.76 compared to 0.68 for the nine months ended September 30, 2020.

For the nine months ended September 30, 2021, Adjusted EBITDA increased by $22.0 million, or 262.2%, compared to Adjusted EBITDA of $8.4 million for the nine months ended September 30, 2020. This increase was primarily driven by higher coal revenues partially offset by higher operating costs.

~~United States~~

Nine months ended September 30,

2021

2020

Change

%

(in US$ thousands)
Sales volume (MMt)

4.9

4.0

0.9

23.2%
Total revenues ($)

541,860

345,083

196,777

57.0%
Coal revenues ($)

539,496

340,582

198,914

58.4%
Average realized price per Mt sold ($/Mt)

109.0

84.8

24.2

28.6%
Met sales volume (MMt)

4.8

3.9

0.9

21.7%
Met coal revenues ($)

534,017

337,599

196,418

58.2%
Average realized Met price per Mt sold ($/Mt)

111.5

85.8

25.7

30.0%
Mining costs ($)

307,732

254,794

52,938

20.8%
Mining cost per Mt sold ($/Mt)

63.0

64.4

(1.4)

(2.2)%
Operating costs ($)

380,412

289,367

91,045

31.5%
Operating costs per Mt sold ($/Mt)

76.9

72.1

4.8

6.7%
Segment Adjusted EBITDA ($)

164,404

56,153

108,251

192.8%

Coal revenues increased by $198.9 million, or 58.4%, to $539.5. million for the nine months ended September 30, 2021, as compared to $340.6 million for the nine months ended September 30, 2020. This increase was mainly driven by higher Met coal sales volumes driven by strong U.S. -sourced coal demand, particularly into China, exceeding pre-COVID-19 pandemic levels, whereas the U.S. Operations were idled for two months during the nine months period ended September 30, 2020.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~35

~~Table of Contents~~

Additionally, our U.S. Operations saw an increase in average realized Met coal pricing of $25.7 per Mt sold to $111.5 per Mt sold for the nine months ended September 30, 2021, compared to $85.8 per Mt sold for the 2020 period. The increase reflected a strong U.S.-sourced coal demand into China following Chinese restrictions on imports of Australian-sourced coal.

Operating costs increased by $91.0 million, or 31.5%, to $380.4 million for the nine months ended September 30, 2021, compared to operating costs of $289.4 million for the nine months ended September 30, 2020. The increase was primarily due to higher mining costs of $52.9 million, an increase of 20.8% compared to the same period in 2020, as a result of production returning to pre-COVID-19 pandemic levels, whereas the U.S. Operations were idled for two months during the nine months ended September 30, 2020, combined with higher freight expenses driven by increase in sales volume and for certain contracts for which we arrange and pay for transportation costs that did not exist to the same extent in the nine months to September 30, 2020.

Adjusted EBITDA increased by $108.3 million, or 192.8%, for the nine months ended September 30, 2021 compared to Adjusted EBITDA of $56.2 million for the nine months ended September 30, 2020. This increase was primarily driven by demand and production returning to pre-COVID-19 pandemic levels, higher average realized Met coal price per Mt sold and increased sales volumes, partially offset by higher operating costs.

~~Corporate and Other Adjusted EBITDA~~

~~The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:~~

Nine months ended September 30,

2021

2020

Change

%

(in US$ thousands)
Selling, general, and administrative expenses

$
21,244

$
20,138

$
1,106

5.5%
Other, net

164

(75)

239

(318.7)%
Total Corporate and Other Adjusted EBITDA

$
21,408

$
20,063

$
1,345

6.7%

Corporate and other costs increased $1.3 million to $21.4 million for the nine months ended September 30, 2021, as compared to $20.1 million for the nine months ended September 30, 2020. The increase in selling, general, and administrative expenses was primarily driven by unfavorable average foreign exchange rate on translation of the Australian corporate entities for the nine months ended September 30, 2021 compared to the 2020 period, partially offset by improved efficiencies and cost savings initiatives to reduce corporate spend in 2021 compared to 2020.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~36

~~Table of Contents~~

~~Mining and operating costs for the Nine months ended September 30, 2021 compared to Nine months ended September 30, 2020~~

~~A reconciliation of segment costs and expenses, segment operating costs, and segment mining costs is shown below:~~

Nine months ended September 30, 2021

(in US$ thousands)

Australia

United States

Other / Corporate

Total Consolidated
Total costs and expenses

$
872,875

$
443,696

$
21,982

$
1,338,553
Less: Selling, general and administrative expense

—

—

(21,250)

(21,250)
Less: Restructuring costs

(2,300)

—

—

(2,300)
Less: Depreciation, depletion and amortization

(68,738)

(63,284)

(732)

(132,754)
Total operating costs

801,837

380,412

—

1,182,249
Less: Other royalties

(63,873)

(19,346)

—

(83,219)
Less: Stanwell rebate

(43,169)

—

—

(43,169)
Less: Freight expenses

(122,061)

(44,029)

—

(166,090)
Less: Other non-mining costs

(37,166)

(9,305)

—

(46,471)
Total mining costs

535,568

307,732

—

843,300
Sales Volume excluding non-produced coal (MMt)

8.2

4.9

—

13.1
Mining cost per Mt sold ($/Mt)

65.7

63.0

—

64.7

Nine months ended September 30, 2020

(in US$ thousands)

Australia

United States

Other / Corporate

Total Consolidated
Total costs and expenses

$
803,420

$
357,947

$
20,713

$
1,182,080
Less: Selling, general and administrative expense

—

—

(20,138)

(20,138)
Less: Depreciation, depletion and amortization

(66,387)

(68,580)

(575)

(135,542)
Total operating costs

737,033

289,367

—

1,026,400
Less: Other royalties

(56,003)

(9,148)

—

(65,151)
Less: Stanwell rebate

(82,571)

—

—

(82,571)
Less: Freight expenses

(114,386)

(19,089)

—

(133,475)
Less: Other non-mining costs

(8,526)

(6,336)

—

(14,862)
Total mining costs

475,547

254,794

—

730,341
Sales Volume excluding non-produced coal (MMt)

9.1

4.0

—

13.1
Mining cost per Mt sold ($/Mt)

52.4

64.4

—

56.0

~~Average realized Met price for the Nine months ended September 30, 2021 compared to Nine months ended September 30, 2020~~

~~A reconciliation of the Company’s average realized Met coal price is shown below:~~

Nine months ended September 30,

2021

2020

Change

%

(in US$ thousands)
Met sales volume (MMt)

11.1

10.5

0.6

5.3%
Met coal revenues ($)

1,268,160

978,492

289,668

29.6%
Average realized Met price per Mt sold ($/Mt)

114.6

93.1

21.5

23.1%

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~37

~~Table of Contents~~

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

	Three months ended September 30,				Nine months ended September 30,				Three months ended March 31,
		2021		2020		2021		2020		2022		2021
		(in US$ thousands)				(in US$ thousands)				(in US$ thousands)
Reconciliation to Adjusted EBITDA:
Net income (loss)	$	81,988	$	(41,794)	$	(14,069)	$	(164,989)	$	269,898	$	(40,972)
Add: Depreciation, depletion and amortization		38,461		48,693		132,754		135,542		38,009		53,081
Add: Interest expense (net of income)		18,251		12,207		49,982		36,528		17,332		15,135
Add: Other foreign exchange losses		2,487		1,614		4,376		5,829		1,991		1,749
Add: Loss on extinguishment of debt		—		—		5,744		—
Add: Income tax (benefit) expense		9,096		(11,169)		(1,788)		(31,525)		81,943		(19,068)
Add: Impairment of assets		—		—		—		63,111
Add: Restructuring costs		—		—		2,300		—
Add: Losses on idled assets held for sale		(113)		—		2,216		—		1,386		1,494
Add: Decrease in provision for discounting and credit losses		(2,430)		—		(8,074)		—
Add: Increase (decrease) in provision for discounting and credit losses										428		(3,778)
Adjusted EBITDA	$	147,740	$	9,551	$	173,441	$	44,496	$	410,987	$	7,641

Liquidity and Capital Resources

Overview

Our objective is to maintain a prudent capital structure and to ensure that sufficient liquid assets and funding is 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 availability under the ABL Facility.

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, business or assets acquisitions and payment of dividends. Going forward, we will use cash to fund debt service payments on the Notes, the ABL Facility and our other indebtedness, to fund operating activities, working capital, capital expenditures, redemption of Notes and, if declared, payment of dividends. Based on our outlook for the next twelve months, which is subject to continued changing demand from our customers, volatility in coal prices, ongoing interruptions and uncertainties surrounding China’s import restrictions, such as trade barriers imposed by China on ~~Australian-sourced~~Australian sourced coal and the uncertainty of impacts from the ~~COVID-19 pandemic~~Russia and Ukraine war on the global ~~economy,~~supply chain, we believe expected cash generated from operations together with available borrowing facilities and other strategic and financial initiatives, will be sufficient to meet the needs of our existing operations, capital expenditure, ~~and~~ service our debt ~~obligations.~~obligations and, if declared, 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 and competitive conditions and other risks described in this document, Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC and ASX on February ~~25, 2021, and Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021, filed with the SEC and ASX on May 10, 2021.~~22, 2022.

Liquidity as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was as follows:

		September 30, 2021		December 31, 2020		March 31, 2022		December 31, 2021
		(in US$ thousands)				(in US$ thousands)
Cash, excluding restricted cash	$	195,727	$	45,485	$	571,215	$	437,679
Availability under ABL Facility ⁽¹⁾		100,000		—		100,000		100,000
Availability under Revolving Syndicate Facility Agreement		—		222,375
Total	$	295,727	$	267,860	$	671,215	$	537,679

⁽¹⁾ The ABL Facility contains a springing fixed charge coverage ratio of not less than 1.00 to 1.00, which ratio is tested if availability under the ABL facility is less than $17.5 million for five consecutive business days or less than $15.0 million on any business day.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20223826

Table of Contents

Our total indebtedness as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 consisted of the following:

		September 30, 2021		December 31, 2020		March 31, 2022		December 31, 2021
		(in US$ thousands)				(in US$ thousands)
Current instalments of interest bearing liabilities					$	314,453	$	315,000
Current instalments of other financial liabilities and finance lease obligations	$	13,153	$	4,231		5,614		8,634
Interest bearing liabilities, excluding current instalments		332,817		327,625
Other financial liabilities, excluding current instalments		14,980		—
Other financial liabilities and finance lease obligations, excluding current instalments						13,357		14,031
Total	$	360,950	$	331,856	$	333,424	$	337,665

Liquidity

As of ~~September 30, 2021,~~March 31, 2022, available liquidity was ~~$295.7~~ $671.2million, comprising cash and cash equivalents (excluding restricted cash) of ~~$195.7~~ $571.2million and $100.0 million of available under our ABL Facility.

As of December 31, ~~2020,~~2021, available liquidity was ~~$267.9~~$537.7 million, comprising cash and cash equivalents (excluding restricted cash) of ~~$45.5~~$437.7 million and ~~$222.4~~$100.0 million of available ~~borrowing facilities.~~

~~In light of the COVID-19 pandemic, the Company has taken steps to strengthen its financial position and maintain financial flexibility.~~

On January 6, 2021, we raised financing of $23.5 million (A$30.2 million) following the completion of sale and leaseback arrangements with a third-party financier for selected heavy mining equipment assets atborrowings under our ~~Australian Operations. The proceeds we received from the transaction were used to repay a portion of drawn balances under the extinguished SFA.~~

~~During the quarter ended June 30, 2021, we successfully completed a refinancing initiative, which consisted of the~~ ABL Facility of $100.0 million, an offering of $350.0 million aggregate principal amount of the Notes and the fully underwritten equity Entitlement Offer of $101.4 million. A portion of the proceeds from these transactions were used to, among other things (i) repay all outstanding obligations under the SFA, and to terminate such agreement; (ii) cash collateralize and replace bank guarantees previously issued under the SFA; and (iii) pay discounts, fees and expenses related to the refinancing transactions. Refer to Note 5 “Capital Structure” and Note 11 “Interest Bearing Liabilities” to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

The new capital structure provides the Company financial flexibility by eliminating the application of the legacy SFA financial covenants and introducing new debt with terms that are more sustainable for our business. The arrangements also extended the debt maturity profile, provide a diversification of funding sources and strengthens our liquidity position.

~~The Company continues to actively review plans for reducing operating, corporate and capital expenditures to ensure sufficient available liquidity during this period of uncertainty and volatility.~~Facility.

Cash

Cash is 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.

Senior Secured Notes

~~On May 12, 2021, we issued $350.0 million aggregate principal~~As of March 31, 2022, the outstanding amount of ~~10.750% Senior Secured~~our Notes ~~due 2026. The Notes were issued at a price of 98.112% of their principal amount and mature on May 15, 2026.~~was $314.5 million. Interest on the Notes is payable semi-annually in arrears on May 15 and November 15 of each year. The Notes mature on May 15, 2026 and are senior secured obligations of the Company.

The terms of the Notes are governed by the Indenture. The Indenture ~~which~~ contains customary covenants for high yield bonds, including, but not limited to, ~~limitation~~limitations on ~~certain~~ investments, liens, indebtedness, asset sales, transactions with affiliates and restricted payments, including payment of dividends on capital stock.

We may redeem any of the Notes beginning on May 15, 2023. The ~~Indenture~~initial redemption price of the Notes is 108.063% 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 May 15, 2023, and will be 100% of the principal amount of the Notes, plus accrued and unpaid interest, beginning on May 15, 2025. We may also ~~contains customary events~~redeem some or all of ~~default, including failure~~the Notes at any time and from time to ~~make required payments, failure~~time prior to ~~comply~~May 15, 2023 at a price equal to 100% of the principal amount thereof plus a “make-whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

In connection with ~~certain agreements or covenants, failure~~the dividend declared on February 24, 2022, we offered to ~~pay or acceleration of certain other indebtedness, certain events of bankruptcy and insolvency, and failure~~purchase up to ~~pay certain judgments. An event of default under the Indenture will allow either the Trustee or the holders of at least 25% in~~$100.0 million aggregate principal amount of the ~~then-outstanding~~Notes pursuant to the terms of the Indenture. On March 30, 2022, pursuant to the offer to purchase, we purchased an aggregate principal amount of $0.5 million at a price equal to 104% of the principal amount of the Notes, plus accrued and unpaid interest on the Notes to, ~~accelerate, or in certain cases, will automatically cause~~but not including, the ~~acceleration~~date of ~~the amounts due under the Notes. Refer to Note 11 “Interest Bearing Liabilities” to our unaudited condensed consolidated financial statements for further information~~redemption.

As of ~~September 30, 2021,~~March 31, 2022, we were in compliance with all applicable covenants under the Indenture.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~39

~~Table of Contents~~

ABL Facility

OnThe ABL Facility, dated May 12, 2021, ~~we entered into the ABL Facility agreement with~~is for an aggregate multi-currency lender commitment of up to $100.0 million, including a $30.0 million sublimit for the issuance of letters of credit and $5.0 million for swingline ~~loans. As of September 30, 2021, no amounts were~~loans, at any time outstanding, ~~and no outstanding letters of credit issued under the ABL Facility.~~subject to borrowing base availability. The ABL Facility will mature on May 12, 2024.

~~Availability~~ Borrowings under the ABL Facility is limited to an eligible borrowing base, determined by applying customary advance rates to eligible accounts receivable and inventory and deducting certain reserves, which may be established by the agent in its reasonable credit discretion that could reasonably be expected to have an adverse effect on the value of the collateral included in the borrowing base.

~~Borrowings under the ABL facility~~ bear interest at a rate equal to a BBSY rate plus an applicable margin. ~~In addition to paying interest, we are also required to pay a fee in respect of unutilized commitments, on~~As at March 31, 2022, no amounts ~~available to be~~were drawn ~~under outstanding~~and no letters of ~~credits and certain administrative fees.~~

The ABL Facility contains customary representations and warranties and affirmative and negative covenants including, among others, a covenant regarding the maintenance of a fixed charge coverage ratio if certain conditions are triggered, covenants relating to financial reporting, covenants relating to the payment of dividends on, or purchase or redemption of, our capital stock, covenants relating to the incurrence or prepayment of certain debt, and covenants relating to the incurrence of liens or encumbrances, compliance with laws, transactions with affiliates, mergers and sales of all or substantially all of the our assets and limitations on changes in the nature of the Company’s business Borrowingscredit were outstanding under the ABL ~~facility bear interest at a rate equal to a BBSY rate plus an applicable margin. In addition to paying interest, we are also required to pay a fee in respect~~Facility.

Coronado Global Resources Inc. Form 10-Q March 31, 202227

Table of ~~unutilized commitments, on amounts available to be drawn under outstanding letters of credits and certain administrative fees.~~Contents

As of ~~September 30, 2021,~~March 31, 2022, we were in compliance with all applicable covenants under the ABL Facility.

Bank Guarantees and Surety Bonds

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. As of ~~September 30, 2021,~~March 31, 2022, we had outstanding bank guarantees of ~~$45.7~~$46.1 million to secure various obligations and commitments. The Company provided cash, in the form of deposits, as collateral against these bank guarantees.

For the U.S. Operations, in order to provide the required financial assurance, we generally use surety bonds for post-mining reclamation. We can also use bank letters of credit to collateralize certain obligations. As of ~~September 30, 2021,~~March 31, 2022, we had outstanding surety bonds of ~~$29.7~~$29.6 million and letters of credit of $16.8 million issued from our available bank guarantees, to secure various obligations and commitments. Future regulatory changes relating to these obligations could result in increased obligations, additional costs or additional collateral requirements.

Dividend

~~During~~On February 24, 2022, our Board of Directors declared an unfranked ordinary dividend of 9.0 cents per CDI (USD). The dividend had a record date of March 18, 2022 and was paid on April 8, 2022.

On April 26, 2022, we amended our dividend policy with plans to pay a fixed cash dividend of 0.5 cent per CDI biannually (1.0 cent per CDI annually), in accordance with our over-arching distribution policy. The payment of dividends remains at the ~~nine months~~discretion of our Board of Directors.

On May 9, 2022, our Board of Directors declared a special unfranked dividend of $99.5 million, or 5.9 cents per CDI, reflecting the unaccepted portion of the offer to ~~September~~purchase the Notes made in connection with the dividend declared on February 24, 2022, and a special unfranked dividend of $100.6 million, or 6.0 cents per CDI. CDIs will be quoted as “ex” dividend on May 30, ~~2021, we did~~2022. The dividend will have a record date of May 31, 2022 and be payable on June 21, 2022. The total special dividends of $200.0 million will be funded from available cash.

In connection with the declared special dividend, Coronado Finance Pty Ltd, a wholly-owned subsidiary of the Company offered to purchase up to $100.6 million aggregate principal amount of the Notes at a purchase price equal to 104% of the principal amount of the Notes pursuant to the terms of the Indenture. The payment of the special dividend is not ~~pay dividends~~contingent on acceptance of the offer to ~~stockholders or CDI holders on~~purchase the ~~ASX.~~Notes by the Note holders.

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. ~~Following the refinancing transaction in May 2021, we~~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, partial redemption of the Notes, business or assets acquisitions and, if declared, payment of dividends.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20224028

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Historical Cash Flows

The following table summarizes our cash flows for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ as reported in the accompanying consolidated financial statements:

Cash Flow

	Nine months ended September 30,				Three months ended March 31,
		2021		2020		2022		2021
	(in US$ thousands)				(in US$ thousands)
Net cash provided by (used in) operating activities	$	171,115	$	(38,095)
Net cash provided by operating activities					$	171,849	$	5,239
Net cash used in investing activities		(145,782)		(79,263)		(41,176)		(32,904)
Net cash provided by financing activities		122,623		102,206
Net cash (used in) provided by financing activities						(4,816)		14,113
Net change in cash and cash equivalents		147,956		(15,152)		125,857		(13,552)
Effect of exchange rate changes on cash and restricted cash		2,287		3,258		7,679		1,516
Cash and restricted cash at beginning of period		45,736		26,553		437,931		45,736
Cash and restricted cash at end of period	$	195,979	$	14,659	$	571,467	$	33,700

Operating activities

Net cash provided by operating activities was ~~$171.1~~$171.8 million for the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, compared to ~~a cash used in operating activities of $38.1~~$5.2 million for the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021. The increase ~~in cash provided by operating activities~~ was driven by ~~favorable movement in working capital,~~higher coal revenues due to increase in the average realized Met coal ~~revenues in the period~~pricing partially offset by higher operating ~~costs.~~costs and unfavorable working capital movement, mainly in trade receivables.

Investing activities

Net cash used in investing activities was ~~$145.8~~ $41.2million for the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, compared to ~~$79.3~~$32.9 million for the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021. Cash spent on capital expenditures for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 was ~~$75.9~~$37.8 million, of which ~~$28.2~~$8.5 million related to the Australian Operations, ~~$46.1~~$29.2 million related to the U.S. Operations and the remaining ~~$1.6~~$0.1 million for other and corporate. During the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, a net of ~~$69.9~~ $3.5million of additional deposits were provided as collateral for ~~bank guarantees and~~ our U.S. workers compensation obligations.

Financing activities

Net cash ~~provided by~~used in financing activities was ~~$122.6~~ $4.8million for the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, compared to ~~$102.2 million for the nine months ended September 30, 2020. Included in the net~~ cash provided by financing activities of $14.1 million for the ~~nine~~three months ended ~~September 30, 2021, were~~March 31, 2021. The net ~~proceeds from borrowings of $396.3 million,~~cash used in financing activities for the three months ended March 31, 2022, related to repayment of ~~borrowings of $371.4 million and net proceeds from the stock issuance of $97.7 million.~~borrowings.

Included in the net cash provided in financing activities for the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, were net proceeds from borrowings of ~~$165.0~~$53.5 million, ~~net~~including proceeds ~~from stock issuance~~ of ~~$171.6~~$23.5 million post completion of a financing arrangement for the sale and lease back of heavy mining equipment owned by Curragh, repayment of borrowings of ~~$216.8~~$38.1 million, and ~~$24.2~~$1.3 million for ~~dividends paid to the shareholders of the Company.~~debt issuance costs.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~41

~~Table of Contents~~

Contractual Obligations

~~The following is a summary of~~There were no material changes to our contractual obligations ~~at September 30, 2021:~~

Payments Due By Year

Total

Less than

1 ‑ 3

3 ‑ 5

More than

1 Year

Years

Years

5 Years

(in US$ thousands)
Long‑term debt obligations(1)

$
31,024

$
7,295

$
13,934

$
9,795

$
—
Senior secured notes (2)

350,000

—

—

350,000

—
Mineral lease commitments(3)

45,738

4,991

10,268

9,410

21,069
Operating and finance lease commitments

26,322

9,555

14,640

1,721

406
Unconditional purchase obligations(4)

14,968

14,968

—

—

—
Take‑or‑pay contracts(5)

1,313,286

98,648

244,643

247,597

722,398
Total contractual cash obligations

$
1,781,338

$
135,457

$
283,485

$
618,523

$
743,873

~~(1)Represents financial obligation relating to amounts outstanding~~ from ~~financing equipment purchases, insurance premiums~~the information previously provided in Item 7. “Management’s Discussion and ~~financial liabilities for a sale~~Analysis of Financial Conditions and ~~lease back type arrangement.~~

~~(2)~~Represents financial obligation outstanding under the Senior Secured Notes. Refer to Note 11. “Interest bearing liabilities” in the accompanying audited unaudited condensed consolidated financial statements for additional discussion.

~~(3)~~Represents future minimum royalties and payments under mineral leases. Refer to Note 17. “Commitments” in the accompanying audited unaudited condensed consolidated financial statements for additional discussion.

~~(4)Represents firm purchase commitments for capital expenditures (based~~Results of Operations” of our Annual Report on ~~order to suppliers for capital purchases)~~Form 10-K for the ~~next twelve months.~~

~~(5)Represents various short-~~year ended December 31, 2021, filed with the SEC and ~~long-term take-or-pay arrangements in Australia associated with rail and port commitments for the delivery of coal.~~ASX on February 22, 2022.

Critical Accounting Policies and Estimates

The preparation of our 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 financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, we evaluate our estimates. Our estimates are based on historical experience and various other assumptions that we believe are appropriate, the results of which form the basis for making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. All of these accounting estimates and assumptions, as well as the resulting impact to our financial statements, have been discussed with the Audit Committee of our Board of Directors.

Our critical accounting policies are discussed in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC and ASX on February ~~25, 2021.~~22, 2022.

Coronado Global Resources Inc. Form 10-Q March 31, 202229

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Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented

See Note 2. (a) “Newly Adopted Accounting Standards” to our unaudited condensed consolidated financial statements for a discussion of newly adopted accounting standards. As of ~~September 30, 2021,~~March 31, 2022, there were no accounting standards not yet implemented.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20224230

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ITEM 3. 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.

Access to international markets may be subject to ongoing interruptions and trade barriers due to policies and tariffs of individual ~~countries, and the actions of certain interest groups to restrict the import or export of certain commodities.~~countries. For example, the ~~current~~ imposition of tariffs and import quota restrictions by China on U.S. and Australian coal imports, respectively, including the ongoing suspension of imports of Australian coal into China, may in the future have a negative impact on our profitability. We may or may not be able to access alternate markets ~~for~~of our coal should additional interruptions and trade barriers occur in the future. An inability for ~~Met~~metallurgical coal suppliers to access international markets, including China, 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 Item 1A. “Risk Factors—Risks related to the Supply Deed with Stanwell may adversely affect our financial condition and results of operations” in our Annual Report on Form 10-K filed with the SEC and ASX on February ~~25, 2021.~~22, 2022.

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 in our Australian Operations 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. At ~~September 30, 2021,~~March 31, 2022, there were ~~$95.6~~$82.0 million of outstanding provisionally priced sales. If prices were to decrease 10%, provisionally priced sales would decrease by ~~$9.6~~ $8.2million. See 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” in our Annual Report on Form 10-K filed with the SEC and ASX on February ~~25, 2021.~~22, 2022.

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). 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 fiscal year ~~2021~~2022 will be purchased under fixed-price contracts or on a spot basis.

Coronado Global Resources Inc. Form 10-Q March 31, 202231

Table of Contents

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 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 ~~September 30, 2021,~~March 31, 2022, we had ~~$378.1~~$333.4 million of fixed rate borrowings and Notes and no variable-rate borrowings outstanding.

We currently do not hedge against interest rate fluctuations.

~~Coronado Global Resources Inc. Form 10-Q September 30, 2021~~43

~~Table of Contents~~

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 ~~90%~~66% of expenses incurred at our Australian Operations are denominated in A$. Approximately ~~10%~~34% of our Australian Operations’ purchases are made with reference to US$, which provides a natural hedge against foreign exchange movements on these purchases (including fuel, some 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 ~~$22.4 million and $68.5~~ $25.7million for the three ~~and nine~~ months ended ~~September 30, 2021,~~March 31, 2022, respectively.

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~~nonmonetary 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-Q ~~September 30, 2021~~March 31, 20224432

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item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Group Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based solely on the definition of “disclosure controls and procedures” in Rule 13a-15(e) promulgated under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of the end of the period covered by this ~~report,~~Quarterly Report on Form 10-Q, we carried out an evaluation under the supervision and with the participation of our management, including the Chief Executive Officer and the Group Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, the Chief Executive Officer and the Group Chief Financial Officer concluded that our disclosure controls and procedures were effective.

Changes to Internal Control over Financial Reporting

During the fiscal quarter covered by this Quarterly Report on Form 10-Q, there were no changes in the Company's internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act, that materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20224533

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PART II – OTHER INFORMATION

item 1. lEGAL PROCEEDINGS

We are subject to various legal and regulatory proceedings. For a description of our significant legal proceedings refer to Note ~~18.~~14. “Contingencies” to the unaudited condensed consolidated financial statements included in Part I, Item 1. “Financial Statements” of this Quarterly Report, which information is incorporated by reference herein.

ITEM 1A. RISK FACTORS

~~There~~Except as set forth below, there were no material changes to the risk factors previously disclosed in Part I, Item 1A, “Risk Factors”, of our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC and ASX on February ~~25, 2021~~22, 2022:

Our business may be adversely affected by the impact on the global economy due to the ongoing military conflict between Russia and Ukraine or any other geopolitical tensions.

Global markets are experiencing volatility and disruption following the geopolitical tensions and the military conflict between Russian and Ukraine, including the full-scale military invasion of Ukraine by Russian troops. This military conflict has led to, and may lead to additional, sanctions and other penalties being levied by the United States, European Union and other countries against Russia, Belarus, the Crimea Region of Ukraine and the two separatist republics in the Donetsk and Luhansk regions of Ukraine, including expansive ban on imports and exports of products to and from Russia.

We are unable to predict the extent and duration of the ongoing military conflict, which could lead to further market disruptions, including significant volatility in commodity prices, including the coal we sell and fuel we purchase, instability in the financial markets, higher inflation, supply chain interruptions, political and social instability as well as increase in cyberattacks and espionage. Further, sanctions, and any other measures, as well as the existing and potential further responses from Russia or other countries to such sanctions, could adversely affect the global economy and financial markets, which could in turn have an adverse impact on our financial condition and results of operations or heighten other risks described in Part ~~II,~~I, Item ~~1A.~~1A, “Risk Factors”, of our ~~Quarterly~~Annual Report on Form ~~10-Q~~10-K for the ~~quarterly period~~year ended ~~March~~December 31, 2021, filed with the SEC and ASX on ~~May 10, 2021.~~February 22, 2022.

item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

item 3. DEFAULTS UPON SENIOR SECURITIES

None.

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 Global Resources.

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 Federal Mine Safety and Health Act of 1977, or 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 in the United States 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 Quarterly Report on Form 10-Q. The disclosures reflect the United States mining operations only, as these requirements do not apply to our mines operated outside the United States.

ITEM 5. OTHER INFORMATION

None.

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20224634

Table of Contents

ITEM 6. EXHIBITS

The following documents are filed as exhibits hereto:

Exhibit No.	Description of Document
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 By-Laws (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)~~
~~10.2~~	Separation Letter Agreement, dated August 28, 2021, between Coronado Global Resources Inc. and James Campbell (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 000-56044) filed on August 31, 2021 and incorporated herein by reference)
15.1	Acknowledgement of Independent Registered Public Accounting Firm
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 Group Chief 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
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

___________________________

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20224735

Table of Contents

SIGNATURES

Pursuant to the requirements 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.

	By:	/s/ Gerhard Ziems
	Gerhard Ziems
	Group Chief Financial Officer (as duly authorized officer and as principal financial officer of the registrant)

Date: ~~November 8, 2021~~May 9, 2022

Coronado Global Resources Inc. Form 10-Q ~~September 30, 2021~~March 31, 20224836

(in US$ thousands)		Trade and related party trade receivables		Other Assets		Total
As at January 1, 2021	$	9,298	$	0	$	9,298
Change in estimates during the current period		445		481		926
Unwind of provision for expected credit losses		(9,000)		0		(9,000)
As of September 30, 2021	$	743	$	481	$	1,224

(in US$ thousands)	September 30, 2021		December 31,2020
Raw coal	$	21,891	$	19,557
Saleable coal		40,577		26,581
Total coal inventories		62,468		46,138
Supplies inventory		57,681		63,997
Total inventories	$	120,149	$	110,135


				Net unrealized gain (loss)
(in US$ thousands)		Foreign currency translation adjustments		Cash flow fuel hedges		Total
Balance at December 31, 2020	$	(26,777)	$	(2,029)	$	(28,806)
Net current-period other comprehensive income (loss):
Gain in other comprehensive income (loss) before reclassifications		10,502		11,310		21,812
Loss on long-term intra-entity foreign currency transactions		(27,298)		0		(27,298)
Gains reclassified from accumulated other comprehensive income (loss)		0		(5,130)		(5,130)
Tax effects		0		(2,135)		(2,135)
Total net current-period other comprehensive gain (loss)		(16,796)		4,045		(12,751)
Balance at September 30, 2021	$	(43,573)	$	2,016	$	(41,557)

	Payments Due By Year
		Total		Less than		1 ‑ 3		3 ‑ 5		More than
				1 Year		Years		Years		5 Years
	(in US$ thousands)
Long‑term debt obligations(1)	$	31,024	$	7,295	$	13,934	$	9,795	$	—
Senior secured notes (2)		350,000		—		—		350,000		—
Mineral lease commitments(3)		45,738		4,991		10,268		9,410		21,069
Operating and finance lease commitments		26,322		9,555		14,640		1,721		406
Unconditional purchase obligations(4)		14,968		14,968		—		—		—
Take‑or‑pay contracts(5)		1,313,286		98,648		244,643		247,597		722,398
Total contractual cash obligations	$	1,781,338	$	135,457	$	283,485	$	618,523	$	743,873