Yancoal Australia Ltd reported a 42% increase in first-half operating profit before tax to AUD 328 million as production reached a record 19.8 million tons, driven by higher thermal and metallurgical coal volumes.
Revenue for the six months ended June 30 rose 13% year-over-year to AUD 3.01 billion, while operating EBITDA climbed 29% to AUD 767 million, lifting the margin to 24%. Cash operating costs increased 3% to AUD 96 per ton, with raw material costs rising to AUD 36 per ton primarily due to higher diesel prices. The realized selling price for coal advanced 3% to AUD 154 per ton, with thermal coal at AUD 143 per ton and metallurgical coal at AUD 216 per ton.
Statutory profit before tax totaled AUD 56 million, with profit after tax at AUD 17 million, impacted by AUD 272 million in non-operating items. These included a AUD 188 million non-cash hedge reversal loss tied to U.S.-denominated loans and a AUD 49 million impairment on the Middlemount investment. The company declared an interim, fully franked dividend of AUD 0.07 per share, distributing AUD 92.4 million to shareholders.
Production growth was led by a 5% increase in attributable saleable coal output to 19.8 million tons, with raw coal production totaling 32.5 million tons. Thermal coal accounted for 84% of output, while metallurgical coal made up the remainder. Operational highlights included record railings at Moolarben, with 2.1 million tons shipped to Newcastle in June, and Liebherr R 9800 excavators setting monthly production records at Moolarben and MTW.
Yancoal maintained full-year production guidance in the upper half of its 36.5 million to 40.5 million ton range, targeting a new annual record. Cash operating costs are expected to remain in the upper half of the AUD 90 to AUD 98 per ton guidance. Capital expenditure guidance was reduced by AUD 150 million to AUD 600 million to AUD 750 million, with spending deferred into 2027.
The company also provided updates on key projects. The Kestrel Coal Mine acquisition is slated for completion by early October, utilizing approximately half of Yancoal’s cash balance and adding debt, with pro forma gearing projected at 15% to 18%. A decision on the Hunter Valley Operations extension project is anticipated from the Independent Planning Commission around mid-September.
