Coronado Global Resources Inc. Form 10-K December 31,
2023
83
Table 8.
Logan – Summary of Coal Resources Exclusive
of Reserves at the End of the
Fiscal Year Ended
December 31, 2023 and 2022.
(1)
Coal Resources (Dry Tons, In Situ, MMt)
(2)(3)
Quality (Air-Dried Basis)
Measured
Indicated
Measured
+
Indicated
Inferred
Ash
Sulfur
Volatile
Matter
December 31, 2023
39
36
75
3
17.0%
1.0%
31.0%
December 31, 2022
45
37
82
3
24.0%
1.0%
28.0%
(1)
Pricing for resources is described in Section
11.3.1 of the
Logan TRS (as defined below).
For Logan resources as of December
31,
2022,
based
on
assumed
long-term
average
price
of
$154
per
Mt
(FOB
loadout)
for
underground-mineable
resources,
representing the
long-term average price
forecast for
HVB provided by
Coronado; surface resources
were assessed
at a
sales
price of $83 per Mt (FOB loadout) based on estimated historical pricing for Coronado’s surface operations.
For Logan resources
as of December
31, 2023, based on
assumed long-term average price
of $154 per
Mt (FOB loadout)
for underground-mineable
resources, representing the long-term average
price forecast for HVB provided by
Coronado; surface resources were assessed
at
a sales price of $83 per Mt (FOB loadout)
based on estimated historical pricing for Coronado’s surface
operations.
(2)
Exclusive of reserve tons. Table 1-1 of the Logan TRS provides
a summary of Logan resource tons
inclusive of reserve tons as of
December 31, 2023.
(3)
Reported on a dry basis.
Surface moisture and inherent moisture are excluded.
(4)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
Table 9.
Logan – Summary
of Coal Reserves
(Marketable Sales Basis)
at the End
of the
Fiscal Year Ended
December 31, 2023 and 2022.
(1)
Demonstrated Coal Reserves (Wet
Tons,
Washed or Direct Shipped, MMt)
(2)
Quality (Air-Dried Basis)
Proven
Probable
Total
Ash
Sulfur
Volatile
Matter
December 31, 2023
55
16
71
8.0%
0.9%
35.0%
December 31, 2022
53
17
71
8.0%
0.9%
36.0%
(1)
Pricing data as
provided by Coronado is
described in Section
16.2 of the
Logan TRS.
For Logan reserves
as of December
31,
2022, the pricing data
assumes respective HVA,
HVB and thermal FOB-mine prices
of approximately $192, $170, and
$227 per
Mt for calendar
year 2023. HVA,
HVB, and thermal
prices decrease to approximately
$151, $132, and $83
per Mt, respectively,
through year 2027, and then increase to $271, $237, and $150
per Mt, respectively, through year 2056. For Logan reserves as of
December 31, 2023, the pricing data assumes respective HVA,
HVB and thermal FOB-mine prices of approximately $162, $144,
and $120 per Mt for calendar year 2024.
HVA, HVB, and thermal prices respectively decrease to approximately $161, $143, and
$114 per Mt through year 2026, and then increase to $308, $273, and
$212 per Mt through year 2057.
(2)
Reported on a 4.5% - 6.0% moisture basis.
(3)
Some numerical figures in the
above table have been subject
to rounding adjustments. Accordingly,
numerical figures shown as
totals may not equal the sum of the figures that
precede them.
From December
31, 2022
to December
31, 2023,
total reserves
remain unchanged.
This consistent
number of
total
reserves
was
attributable
to
a
combination
of
updates
to
the
mine
plans,
including
conversion
of
select
resources to reserves, along with
one year of mining depletion.
A TRS with respect to Logan,
updating the TRS
with respect to Logan filed
with Coronado’s Annual Report on Form
10-K for the year ended
December 31, 2022,
was prepared
in February
2024 due to
material differences
in the key
financial modifying
factors including
coal
sales price
assumptions,
operating
costs
and
capital
costs
from
December
31,
2022, to
December
31,
2023.
Coal sales price assumptions underlying
the reserve estimates are discussed in
Sections 12 and 16
of the Logan
TRS,
while
operating
costs
and
capital
costs
assumptions
underlying
the
reserve
estimates
are
discussed
in
Sections
18
and
19
of the
Logan TRS.
The
differences
in
the
key
financial
modifying
factors
did
not
have
a
material impact on the reserve estimates
as of December 31, 2023, as compared
to the reserve estimates as of
December
31,
2022.
From
December
31,
2022,
to
December
31,
2023,
measured
and
indicated
resources
decreased
by
approximately
8.5%,
from
approximately
82
MMt
to
75
MMt.
This
net
reduction
of
7
MMt
of
measured and indicated
mineral resources was
attributable to one
year of mining
depletion along with changes
to the mine
plan. Updated financial inputs,
including coal sales price
assumptions and operating and
capital costs
used
in
estimating
the
resources
exclusive
of
reserves,
including
conversion
of
resources
to
reserves,
as
discussed
in
Section
11.3
of
the
Logan
TRS,
did
not
have
a
material
impact
on
the
measured
and
indicated
resource estimates
as of December
31, 2023, as
compared to the
measured and
indicated resource
estimates
as of December 31, 2022.
Marshall Miller
& Associates,
Inc., a
third-party
firm comprising
mining
experts, whom
we refer
to as
the U.S.
QPs, prepared the estimates
of coal resources and reserves
as of December 31, 2023
summarized in Tables
8
and 9.
A copy of the U.S. QPs’ TRS with respect to Logan, dated as of February 16, 2024, or the Logan TRS, is
filed as Exhibit 96.3 hereto. The U.S. QPs are not affiliated
with Coronado.