Yancoal Australia Ltd. reported a 42% increase in first-half profit as record coal output and higher realized prices offset non-operating losses tied to hedging and asset impairments. The Sydney-based miner posted statutory profit before tax of A$56 million for the six months ended June 30, 2026, down from A$239 million a year earlier, reflecting A$272 million in non-operating items including fair-value losses on hedging instruments and an impairment at the Middlemount mine.
Operational performance improved significantly, with attributable saleable coal production rising 5% year-over-year to a record 19.8 million tonnes. Total run-of-mine output reached 32.5 million tonnes, while rolling twelve-month production totaled 67.3 million tonnes. Thermal coal sales jumped 22% to 16.8 million tonnes and metallurgical coal sales increased 9% to 3.1 million tonnes, driving a 20% rise in total attributable sales to 19.8 million tonnes.
Revenue climbed 13% to A$3.02 billion, supported by a 3% increase in average realized selling prices to A$154 per tonne, including A$143 per tonne for thermal coal and A$216 per tonne for metallurgical coal. Operating EBITDA advanced 29% to A$767 million, expanding the margin to 24% from 23%, while operating profit surged 42% to A$328 million. Cash operating costs rose 3% to A$96 per tonne, within the guidance range of A$90–98 per tonne, with Moolarben’s costs stabilizing near A$60–65 per tonne at annual output of around 18 million tonnes.
The company maintained a strong balance sheet with A$2.1 billion in cash at period-end and no external interest-bearing debt, resulting in a net cash position of A$2.034 billion. Capital expenditure totaled A$254 million in 1H 2026, while the interim dividend was set at a fully franked A$92.4 million, or A$0.07 per share, payable September 18, 2026. Yancoal also reduced its full-year capex guidance by A$150 million to A$600–750 million.
Looking ahead, the company expects the Kestrel Coal acquisition to complete in early October 2026, with pro forma gearing projected at 15–18% post-transaction. The Hunter Valley Operations extension project remains on track for federal approval by year-end, while the Ashton mine is slated for early cessation in early 2028. Safety metrics showed a slight deterioration in the total recordable injury frequency rate to 6.64 in June 2026, though still below the industry weighted average of 9.16.
