Coronado Curragh Pty Ltd Coronado Curragh Pty Ltd and its controlled entities

(formerly Wesfarmers Curragh Pty Ltd) and its controlled entities

ABN 90 009 362 565 ABN 90 009 362 565 Second Interim Financial Statements General Purpose Financial Report For the period ended 29 March 2018 31 December 2017, 2016 and 2015

	Director's declaration 3
	Consolidated statement of profit or loss and other comprehensive income 4
	Consolidated statement of financial position 5
	Consolidated statement of changes in equity 6
	Consolidated statement of cash flows 7
	Notes to the financial statements 8
1.	Corporate information 8
2.	Summary of significant accounting policies 8
3.	Segment information 8
4.	Revenue and expenses 9
5.	Tax expense 9
6.	Cash and cash equivalents 10
7.	Borrowings 10
8.	Financial instruments 11
9.	Reconciliation of cash flows from operating activities 11
10.	Impairment of assets 12
11.	Contributed equity 12
12.	Earnings per share 12
13.	Related party transactions 12
14.	Restatement of prior periods 13
15.	Events after reporting date 13
	Independent auditor's review report to the members 14

Consolidated statement of profit or loss and other comprehensive income

for the interim periods ended 29 March 2018

		3 months to	9 months to	3 months to	9 months to
		29 March	29 March	29 March	29 March
		2018	2018	2017	2017
	Note	\$'000	\$'000	\$'000	\$'000

Revenue
Sale of goods	4	406,696	1,305,541	486,052	1,118,849

Cost of sales		(204,132)	(648,078)	(192,023)	(575,393)
Gross profit		202,564	657,463	294,029	543,456
	4
Other operating income Selling and distribution expense		10,098 (50,098)	9,495 (153,527)	1,037 (51,464)	1,720 (130,691)
Royalty expenses	4	(93,886)	(298,265)	(80,516)	(123,367)
Reversal of previous impairment loss	10	263,097	263,097	-	-
		129,211	(179,200)	(130,943)	(252,338)

Finance costs	4	(444,895)	(662,853)	(10,667)	(11,798)
Profit/(Loss) before income tax		(113,120)	(184,590)	152,419	279,320
Income tax expense	5	(102,443)	(147,061)	(50,558)	(89,790)
Profit/(Loss) for the period		(215,563)	(331,651)	101,861	189,530
Other comprehensive income		-	-	-	-
Total comprehensive income/(loss) for the year, net of tax		(215,563)	(331,651)	101,861	189,530


Earnings per share:
Basic and diluted, profit / (loss) for the year attributable to ordinary equity holders (\$'000)	12	(107,782)	(165,826)	50,931	94,765

Consolidated statement of financial position

as at 29 March 2018

		29 March 2018	30 June 2017
	Note	\$'000	\$'000

ASSETS
Current assets Cash and cash equivalents	6	1	7,935
Intercompany receivables	13	-	264,732
Trade and other receivables		174,040	148,013
Inventories		112,773	114,589
Other current assets		3,558	3,138
Total current assets		290,372	538,407
Non-current assets
Property, plant and equipment		810,547	545,408
Deferred tax assets		63,868	169,141
Other non-current assets		2,386	4,283
Total non-current assets		876,801	718,832
Total assets		1,167,173	1,257,239
LIABILITIES
Current liabilities
Trade and other payables		154,663	142,720
Other financial liabilities	13	29,000	-
Provisions		29,870	28,735
Derivatives		-	12,209
Income tax payable - to parent		-	37,156
Total current liabilities		213,533	220,820
Non-current liabilities
Borrowings	7	847,732	489,544
Other financial liabilities	13	5,600
Non-current provisions		247,439	234,545
Derivatives		-	15,839
Other non-current liabilities		600	832
Total non-current liabilities		1,101,371	740,760
Total liabilities		1,314,904	961,580
Net assets/(liabilities)		(147,731)	295,659
EQUITY / (SHAREHOLDERS' DEFICIT)
Equity attributable to equity holders of the parent
Contributed equity	11	919,749	919,749
Accumulated losses		(1,067,480)	(624,090)
Total equity / (shareholders' deficit)		(147,731)	295,659

Consolidated statement of changes in equity

for the interim period ended 29 March 2018

		Contributed equity	Hedging Reserve	Accumulated losses	Total equity
	Note	\$'000	\$,000	\$'000	\$'000

Balance at 30 June 2016 –as previously reported		-	(67,658)	(797,466)	(865,124)
Reversal of hedge reserve	14	-	67,658	(67,658)	-
Balance at 1 July 2016 – as restated		-	-	(865,124)	(865,124)
Net profit for the period		-	-	189,530	189,530
Other comprehensive income for the period		-	-	-	-
Total comprehensive income for the period		-	-	189,530	189,530

Transactions with equity holders in their capacity as equity holders:
Contributions from ultimate parent	11	919,749	-	-	919,749
Balance at 29 March 2017		919,749	-	(675,594)	244,155

Balance at 30 June 2017 –as previously reported		919,749	(19,633)	(604,457)	295,659
Reversal of hedge reserve	14	-	19,633	(19,633)	-
Balance at 1 July 2017 – as restated		919,749	-	624,090	295,659
Net loss for the period		-	-	(331,651)	(331,651)
Other comprehensive income for the period		-	-	-	-
Total comprehensive loss for the period		-	-	(331,651)	(331,651)

Transactions with equity holders in their capacity as equity holders:
Distribution to owners	13	-	-	(34,600)	(34,600)
Equity dividends	13	-	-	(77,139)	(77,139)
Balance at 29 March 2018		919,749	-	(1,067,480)	(147,731)

Consolidated statement of cash flows

for the interim period ended 29 March 2018

		9 months to	9 months to
		29 March	29 March
		2018	2017
	Note	\$'000	\$'000

Cash flows from operating activities
Receipts from customers		1,275,442	971,550
Payments to suppliers and employees		(1,047,914)	(820,930)
Interest received		-	1,414
Net cash flows from operating activities	9	227,528	152,034

Cash flows from investing activities
Payments for property, plant and equipment		(43,146)	(58,383)
Proceeds from sale of property, plant and equipment		(965)	637
Net cash flows used in investing activities		(44,111)	(57,746)

Cash flows from financing activities
Proceeds from borrowings		700,000	-
Repayment of borrowings		(1,000,000)	(17,353)
Intercompany transfers		264,732	(148,655)
(Payments)/receipts under the tax funding arrangement		(78,944)	72,566
Equity dividends paid		(77,139)	-
Net cash flows from financing activities		(191,351)	(93,442)

Net increase/(decrease) in cash and cash equivalents		(7,934)	846
Cash and cash equivalents at beginning of year		7,935	9,970
Cash and cash equivalents at end of year	6	1	10,816

Notes to the financial statements

for the period ended 29 March 2018

1. Corporate information

The second interim consolidated financial statements of Coronado Curragh Pty Ltd ("Curragh" or the "Company") and its controlled entities (collectively the "Group") for the period ended 29 March 2018 were authorised for issue in accordance with a resolution of the directors on 20 September 2018. The Company is a for-profit company limited by shares incorporated and domiciled in Australia.

2. Summary of significant accounting policies

a) Basis of preparation

The second interim condensed consolidated financial statements for the period ended 29 March 2018 have been prepared in accordance with AASB 134 Interim Financial Reporting and IAS 34 Interim Financial Reporting.

These interim consolidated financial statements, being the second interim period for the financial year ended 30 June 2018, have been prepared specifically for inclusion in the regulatory filings for the planned Initial Public Offering ("IPO") on the Australian Securities Exchange ("ASX") of Coronado Global Resources Inc. and a 144A equity offering, which will be filed with relevant regulatory authorities in accordance with the applicable regulations. The Company's statutory year end is 30 June each year which was synchronised with the year end of its parent entity at the time, Wesfarmers Limited ("WES" or "Wesfarmers"). Wesfarmers disposed of Curragh on 29 March 2018 to Coronado Group LLC. As at disposal date the registered name of the Company was changed from Wesfarmers Curragh Pty Ltd to Coronado Curragh Pty Ltd.

The second interim consolidated financial statements do not include all notes of the type normally included within annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as do the annual financial statements. The second interim consolidated financial statements should be read in conjunction with the Group's financial statements prepared for the financial year ended 30 June 2017 and the first interim period ended 31 December 2017.

b) Significant accounting policies

The Group adopted all the new and amended Accounting Standards and Interpretations that were effective for the reporting period. The adoption of these new and amended Accounting Standards and Interpretations had no impact on the Group's accounting policies. Accordingly, the significant accounting policies of the Group have been consistently applied. The Group early adopted AASB 9 (2014) on the first time adoption of Australian Accounting Standards in a prior year.

c) Significant estimates and judgement

The preparation of the interim consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing this interim consolidated financial report, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial reports prepared for the year ended 30 June 2017.

d) Going concern

Having regard to the Group's financial position and its cash flow forecasts, the directors are of the opinion that the Group will be able to pay its debts as and when they fall due. Accordingly, the consolidated financial statements have been prepared on a going concern basis.

3. Segment information

The Group operates a metallurgical and steaming coalmine in Queensland's Bowen Basin for the purpose of supplying export and domestic markets. For management purposes, the Group is organised into one operating segment.

No operating segments have been aggregated to form the above reportable operating segments.

All of the Group's activities are interrelated, and discrete financial information is reported to the Chief Executive Officer (Chief Operating Decision Maker) as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Group as one segment. As the Group has only one reportable segment, the profit for the segment includes all income and expense items of the Group and the assets of the segment include all of the Group's assets as at balance date.

4. Revenue and expenses

	3 months to 29 March	9 months to 29 March	3 months to 29 March	9 months to 29 March
	2018	2018	2017	2017
	\$'000	\$'000	\$'000	\$'000

Sale of goods
Export coal sales	382,467	1,227,461	461,853	1,035,999
Domestic coal sales	24,229	78,080	24,199	82,850
	406,696	1,305,541	486,052	1,118,849
Royalty expenses
Government mining royalties	(37,937)	(119,384)	(49,086)	(97,461)
Stanwell rebate expense	(55,949)	(178,881)	(31,430)	(25,906)
	(93,886)	(298,265)	(80,516)	(123,367)

The Stanwell rebate relates to a contractual arrangement entered into by the Group with Stanwell Corporation Limited, a State of Queensland owned electricity generator, which requires payment of a rebate for export coal sold from some of the Group's mining tenements. The rebate obligation is accounted for as an executory contract. Accordingly, the expense is recognised as incurred.

Other income
Unrealised derivative gains / (losses)	15,980	28,048	17,520	50,722
Realised derivative losses	(5,793)	(18,050)	(17,522)	(51,258)
Gains/(losses) on disposal of property, plant and equipment	(516)	(2,376)	637	466
Rental income	392	1,043	373	1,029
Other income	35	830	29	761
	10,098	9,495	1,037	1,720
Employee benefits expense
Wages and salaries	(18,507)	(56,690)	(16,030)	(47,091)
Post-employment benefits expense	(1,175)	(2,917)	(1,599)	(3,670)
	(19,682)	(59,607)	(17,629)	(50,761)
Finance costs
Loss on remeasurement of loan carried at amortised cost
(refer note 7)	(432,536)	(624,048)	-	-
Interest expense on borrowings	(10,754)	(34,139)	(9,267)	(9,267)
Interest income Unwind of discount	- (1,605)	- (4,666)	268 (1,668)	1,414 (3,945)
	(444,895)	(662,853)	(10,667)	(11,798)

Depreciation and amortisation expense
Depreciation and amortisation expense	15,367	39,175	7,698	33,444
	15,367	39,175	7,698	33,444

5. Tax expense

Tax Reconciliation

A reconciliation between tax expense and the product of accounting profit before tax multiplied by the Company's applicable income tax rate is as follows:

Profit/(loss) before tax	(113,120)	(184,590)	152,419	279,320
Income tax expense/(benefit) at 30 percent	(33,936)	(55,377)	45,726	83,796
Other non-deductible items	136,379	202,438	4,832	5,994
Income tax expense/(benefit) on profit before tax	102,443	147,061	50,558	89,790

5. Tax expense (continued)

For all periods presented the Group formed part of the Wesfarmers tax consolidated Group. As such, the recoverability of the deferred tax assets was assessed at each reporting date in the context of the Wesfarmers tax consolidated group. Following the disposal of the Group on 29 March 2018 by Wesfarmers, the Group left the Wesfarmers tax Consolidated Group. Furthermore, it is expected that the Group will join a new tax consolidated group formed by its new parent entity. The impact of any tax base reset that may arise as result of these changes post the balance sheet date have not been recognised in these financial statements.

6. Cash and cash equivalents

			29 March	30 June
			2018	2017
			\$'000	\$'000
For the purposes of the cash flow statement, cash and cash equivalents comprise the following:
Cash on hand and in transit			-	1
Cash at bank and on deposit			1	7,934
			1	7,935
7. Borrowings
Non-current
Related party borrowings – long term loan			847,732	489,544
			847,732	489,544
				March 2018
				Non-current
Financial liabilities:	Interest rate	Facility Limit \$'000		\$'000
Related party AUD facility 1	11.5%	AUD 386,000		147,732
Related party AUD cash advance facility	8.95%	AUD 700,000		700,000
Total				847,732

				June 2017
	Interest			Non-current
Financial liabilities:	rate	Facility Limit \$'000		\$'000
Related party AUD facilities	11.5%	AUD 2,295,277		489,544
Related party USD facility	-	USD 220,000		-
Total				489,544

On 25 January 2017, the Group established borrowing facilities, as shown in the table above, with Wesfarmers. Prior to this, the Group had an intercompany non-interest bearing loan with Wesfarmers which was repayable on-demand. This loan was replaced with a number of finance facilities, which are non-interest bearing and have various maturity dates from January 2020 to January 2027.

The finance facilities are secured by a fixed and floating charge over the Group's assets.

The above facilities were provided for working capital and other purposes, such as to cover bank guarantees issued on behalf of the Group, primarily to the State Government of Queensland in respect of the Group's rehabilitation obligations.

As at 30 June 2017, the Group had utilised \$1,386,639,000 of the AUD facilities, which was used to settle the on demand intercompany loan, and \$317,662,141 of the facility was used to cover bank guarantees issued by Wesfarmers on behalf of the Group. At 30 June 2017, the USD facility remained undrawn and available to be utilised by the Group.

7. Borrowings (continued)

Since the above facilities are non-interest bearing and repayable at maturity, the fair value on initial recognition of the amount drawn down under the facility was measured based on the present value of the future cash out flow on maturity, discounted using a market interest rate of 11.5 %. The rate of interest applied was determined through an independent quantitative and qualitative assessment of the Group operating on a standalone basis.

On 25 August 2017, Curragh repaid \$300,000,000 of the term loan facility from the excess cash it had accumulated to that date. The carrying value of the loan (measured at amortised cost) was remeasured on the repayment date using the original effective interest rate and the revised face value. This resulting in a measurement adjustment of \$191,512,000 recognised in the consolidated statement of profit or loss and other comprehensive income.

As part of the sale of Curragh from Wesfarmers Limited to Coronado Group LLC ( the "Transaction"), on 29 March 2018 (completion date), Curragh repaid \$700,000,000 of the term loan facility from funds provided by Coronado Australia Holdings Pty Ltd (parent entity following the Transaction) and the \$386,000,00 of the term loan facility was assigned to Coronado Group LLC by Wesfarmers. All other facilities provided by Wesfarmers were withdrawn on completion date. The carrying value of financial liability was remeasured on repayment resulting in an additional measurement adjustment of \$432,536,000 recognised in the consolidated statement of profit or loss and other comprehensive income.

At the same time on the date of completion, Curragh entered into a new cash advance facility loan agreement with Coronado Australia Holdings Pty Ltd for \$700,000,000 with a repayment date of 29 March 2028 at a market interest rate of 8.95 per cent.

The fair value of the long term loan at 29 March 2018 was \$876,945,000 compared to the carrying value of \$847,732,000. The fair value of the long term loan at 30 June 2017 was equivalent to its carrying value of \$489,544,000.

8. Financial instruments

Except as otherwise disclosed, the carrying values of the Group's financial instruments approximate their fair values, with the exception of other financial liabilities (refer note 13) relating to the Wesfarmers value share liability which is a level 3 valuation, all of the Group's financial instruments are carried at fair value were valued using market observable inputs (Level 2).

9. Reconciliation of cash flows from operating activities

	29 March	29 March
	2018	2017
	\$'000	\$'000


Profit /(loss)for the year	(331,651)	164,924
Adjustments for:
Depreciation and amortisation	39,175	33,446
Reversal of previous impairment loss	(263,097)	-
Net loss/(gain) on disposal of property, plant and equipment	2,377	(466)
Finance costs	658,187	9,267
Unwind of discount	4,665	3,945
Income tax expense	147,061	79,245
(Increase)/decrease in assets
Trade and other receivables	(26,027)	(115,692)
Inventories	1,816	9,627
Prepayments and other assets	1,993	10,580
Increase/(decrease) in liabilities
Trade and other payables	11,942	2,985
Derivatives	(28,048)	(43,194)
Provisions	9,363	(2,436)
Other liabilities	(228)	(197)
Net cash from operating activities	227,528	152,034

10.Impairment of assets

As a result of the Transaction, a value of Curragh's net assets (excluding related party loans) was realised of \$700,000,000. This constitutes a trigger for the reversal of a previous impairment recognised in 2016 based on an arms length market value for the entity. During the period ended 29 March 2018 a \$263,097,000 (\$184,167,900 net of tax) was recognised as an impairment reversal in the consolidated statement of profit or loss and other comprehensive income to write up the property plant and equipment to equal the value of the Transaction. This value has been valued using the Fair Value Less Cost of Disposal ("FVLCD") method, and is a level 3 valuation. This reversal has been allocated across the classes of assets on a proportional base and consistent with the allocation of the original impairment in 2016.

11.Contributed equity

Contributed Equity

	29 March	30 June
	2018	2017
	\$'000	\$'000
Issued and fully paid – 2 ordinary shares	-	-
Equity contribution by Ultimate parent	919,749	919,749
Total contributed equity	919,749	919,749

There has been no movement in the Company's shares on issue

12.Earnings per share

	3 months to	9 months to	3 months to	9 months to
	29 March	29 March	29 March	29 March
	2018	2018	2017	2017
	\$'000	\$'000	\$'000	\$'000
Profit/(loss) attributable to ordinary equity holders (\$'000)	(215,563)	(331,651)	101,861	189,530
WANOS* used in the calculation of basic EPS (shares) and
diluted EPS (shares)	2	2	2	2
Basic EPS (\$'000 per share) and diluted EPS (\$'000 per share)	(107,782)	(165,826)	50,931	94,765

* Weighted average number of ordinary shares

13.Related party transactions

Intercompany receivable

During the period ended 29 March 2018, the intercompany receivable outstanding from Wesfarmers Limited was settled by way of a dividend declared of \$77,139,000. As at 30 June 2017 \$264,732,000 was classified as a current asset which related to cash held with Wesfarmers within its Internal Funds Management System ("IFMS") on the basis that it was readily available. There are no other significant related party transactions during the period.

Borrowings

See note 7 for related party transactions during the period

Other financial liabilities

On 29 March 2018, Wesfarmers Limited prior to execution the agreement to sell the Group entered into a value share agreement with Curragh. Under this agreement Wesfarmers is entitled to receive 25 per cent of Curragh's export coal revenue generated above a realised metallurgical coal price of \$US145 per tonne, paid quarterly over the next two years.

At inception of this agreement a financial liability of \$34,600,000 was recognised being its fair value calculated using a probability weighted discounted cash flow approach using Monte Carlo simulations (level 3 in the fair value hierarchy). This valuation methodology incorporates coal price forecasts and volume assumptions over the life of the VSM.

The discount rate used was determined with reference to prevailing or benchmarked market rates, risk adjusted where necessary. As Curragh received no consideration in exchange for this liability, the transaction has been accounted for as a distribution to the parent. There are no other significant related party transactions during the period.

14.Restatement of prior periods

Subsequent to the sale of the Group to Coronado Group LLC, the Group no longer has access to the hedge documentation prepared and maintained by the previous parent entity, Wesfarmers Limited. In the absence of appropriate hedge documentation, a qualifying criteria for hedge accounting, the Group has determined that hedge accounting cannot be applied. Accordingly, the cumulative hedge reserve of \$67,658,000 at 30 June 2016 and \$19,633,000 at 30 June 2017, as reported in the Statutory financial statements of the Group for the financial year ended 30 June 2017, has been transferred to accumulated losses. As a result of not applying hedge accounting:-

the profit for the 9 month period ended 29 March 2017 increase by \$35,505,000, being the net movement in the hedge reserve between 1 July 2016 and 29 March 2017 and the amount recorded in other comprehensive income for the 9 months ended 29 March 2017; and
the profit per share increased by \$17,752,000 for the 9 months period ended 29 March 2017

15.Events after reporting date

Sale of Curragh

On 22 December 2017, Wesfarmers Limited announced it had agreed to sell the Group to Coronado Coal Group (the "Purchaser") under an agreement which also includes a value share mechanism linked to future metallurgical coal prices (the "Transaction"). The sale was subject to a number of conditions precedent which were all satisfied, and the sale was complete on 29 March 2018. These financial statements have been prepared from the perspective of Wesfarmers Limited immediately preceding the sale of the Group to the Purchaser.

New Stanwell coal supply contract and commitment

Curragh has a Coal Supply Agreement ("CSA") with Stanwell Corporation Limited ("Stanwell") to supply thermal coal to the Stanwell Power Station. The CSA also provides Curragh with mining rights to the Curragh North Mining Lease. A proportion of the Curragh North Mining Lease, the Stanwell Reserved Area ("SRA"), was reserved for the benefit of Stanwell and could not be mined without Stanwell's consent. Under the CSA, Curragh pays certain rebates to Stanwell on metallurgical coal exported from the Curragh East Mining Area and the Curragh North Mining Area.

On 14 August 2018, Curragh entered into the Curragh Mine New Coal Supply Deed ("Supply Deed") with Stanwell.

The Supply Deed grants Curragh the right to mine the coal reserves contained in the SRA and in exchange for these rights Curragh has agreed certain amendments to the CSA and has agreed to enter into a further coal supply agreement, the New Coal Supply Agreement ("NCSA") that will commence on or around the expiry of the CSA (currently expected to expire in 2027).

The consideration for the access to additional reserves and access to the SRA will be deferred and payable as a discount to thermal coal market value over the term of the NCSA. No export rebates are payable during the term of the NCSA. The net present value of the deferred consideration is approximately \$210,000,000.

WICET

Curragh has an equity interest and user agreement with WICET Holdings Pty Ltd ("WICET") as part of its overall port arrangements. On 11 September 2018 the Supreme Court of New South Wales approved a scheme of arrangement ("Debt Scheme") for WICET's senior secured debt facilities to be amended and its repayment, previously 30 September 2018, to be extended for a further term of 8 years.

No other matters or circumstances have arisen since the end of the financial year, which are not otherwise dealt with in the financial statements, that have significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial years.

Ernst & Young 111 Eagle Street Brisbane QLD 4000 Australia GPO Box 7878 Brisbane QLD 4001 Tel: +61 7 3011 3333 Fax: +61 7 3011 3100 ey.com/au

Independent Auditor's Review Report to the Members of Coronado Curragh Pty Ltd

Report on the Interim Financial Report

Conclusion

We have reviewed the accompanying interim financial report of Coronado Curragh Pty Ltd (the Company) and its subsidiaries (collectively the Group), which comprises the statement of financial position as at 29 March 2018, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the 3 months ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the accompanying interim financial report of Coronado Curragh Pty Ltd does not present fairly, in all material respects, the Group's consolidated financial position as at 29 March 2018 and its consolidated financial performance and its consolidated cash flows for the 3 months ended on that date, in accordance with Accounting Standard AASB 134 Interim Financial Reporting.

Directors' Responsibility for the Interim Financial Report

The directors of the Company are responsible for the preparation and fair presentation of the interim financial report and for such internal controls as the directors determine are necessary to enable the preparation of the interim financial report that is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express a conclusion on the interim financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the accompanying interim financial report does not present fairly, in all material respects, the consolidated financial position of the Group as at 29 March 2018, and its consolidated financial performance and its consolidated cash flows for the 3 months ended on that date, in accordance with Accounting Standard AASB 134 Interim Financial Reporting. As the auditor of Coronado Curragh Pty Ltd, ASRE 2410 also requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of an interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Australian professional accounting bodies.

Ernst & Young Brisbane 20 September 2018