Coronado Global Resources Inc commenced conditional and deferred settlement trading of its shares of common stock in the form of Chess Depository Interests (CDIs) on the Australian Securities Exchange (ASX) today. Coronado was expected to trade under the ticker ‘CRN’.
The listing follows the initial public offering (IPO or Offer) of Coronado, with the offering to retail clients of participating brokers and certain institutional investors raising total proceeds of A$774 million. The company says it has achieved “a high-quality and global shareholder base.
“The Energy & Minerals Group (EMG) remains a major shareholder of Coronado holding approximately 78.9% of the total issued capital of the company after the IPO.”
Founded in 2011, Coronado is the largest metallurgical (met) coal producer in the US and the fifth largest met coal producer globally by export volume. Coronado’s assets are located in two of the most prolific met coal producing regions in the world – Queensland’s Bowen Basin in Australia and the Central Appalachian region in the US – and include the Curragh mining complex in the state of Queensland (its Australian operations) and the Buchanan, Logan and Greenbrier mining complexes in the states of Virginia and West Virginia in the US (its US operations). The company says it “is uniquely positioned to serve key global steel markets with its full range of premium met coal products.”
In 2017, Coronado produced 20.2 Mt of saleable coal, 76% of which was met coal. Coronado has substantial Reserves of 1,035 Mt (with Marketable Reserves of 657 Mt), Resources for its Australian Operations of 696 Mt and Resources for its US Operations of 1,581 Mt.
Greg Martin, Coronado’s Chairman, said of the IPO: “Coronado’s listing on the ASX is a significant step in the company’s evolution. In what will be the largest metals and mining IPO since 2004 and largest coal IPO ever, we are very pleased with the make-up of our register and in particular the strong support we have received from high-quality, resources and income-focused investors.
“A tremendous effort is required to achieve a landmark listing like this, and on behalf of the existing shareholders and my colleagues on the Board, I would like to take this opportunity to congratulate Coronado’s management and thank them for all of their hard work and unwavering commitment over the past months.”
Gerry Spindler, Coronado’s Managing Director and Chief Executive Officer, said: “We are very excited to commence our life as a publicly listed company in such a formidable position. With a robust balance sheet and substantial operating cash flows, we are well placed to achieve our objectives and deliver meaningful returns to shareholders.
“In the current environment of strong met coal prices, we are extremely fortunate to be in a position where we can accelerate the production of the incremental tonnes available at our Curragh mine and at the same time deliver our cost efficiency initiatives, creating a great opportunity to generate additional value, on day one, for our new and existing investors. I wish to thank EMG for their support throughout this process and welcome our new investors who share our vision.”
John Calvert, Co-Founder & Managing Partner of EMG, commented: “Met coal has played a critical role in EMG’s investment strategy since inception of the firm in 2006. Our conviction in the on-going importance of met coal to the global steel industry and the tremendous benefits which result from building a business with multiple large-scale, long-life operations, in safe jurisdictions, has been rewarded.
“Gerry Spindler (CEO) and Jim Campbell (COO) have been terrific partners and we look forward to our long-standing relationship continuing in the years ahead”.
