Yancoal Australia (YAL) investor relations material

Executive summary

• Achieved record first-half raw coal production of 32.5 million tonnes and attributable saleable coal production of 19.8 million tonnes, up 5% year-over-year, with thermal coal representing 82% of total production.

• Revenue increased 13% year-over-year to just over $3.02 billion, driven by higher sales volumes and realized prices.

• Operating EBITDA rose 29% to $767 million, with a 24% margin; operating profit before tax up 42% to $328 million.

• Profit after tax was $17 million, down 90% year-over-year, reflecting significant non-cash items including a $188 million hedge loss and a $49 million impairment.

• Progressed acquisition of an 80% interest in the Kestrel Coal Mine for US$1.85 billion upfront plus up to US$550 million contingent payment, expected to complete by Q3/early October 2026.

Financial highlights

• Average realized coal price was $154/tonne, with thermal coal at $143/tonne (up 3%) and metallurgical at $216/tonne (up 4%).

• Cash operating cost per tonne rose 3% to $96, mainly due to higher diesel prices; implied cash margin was $42/tonne.

• Net cash position of $2.1 billion at June 30, with no external debt or interest-bearing loans.

• Fully franked interim dividend of $92.4 million ($0.07/share) declared.

• Operating cash flow was $462 million; investing cash flow was $(306) million; financing cash flow was $(184) million.

Outlook and guidance

• On track to deliver in the upper half of the 36.5–40.5 million tonnes attributable saleable production guidance for 2026.

• Cash operating cost guidance for 2026 is $90–98/tonne, expected at the upper end due to diesel prices.

• Capital expenditure guidance revised down to $600–750 million, mainly due to timing deferrals to 2027.

• Guidance excludes the impact of the Kestrel Coal Mine acquisition, expected to complete by Q3 2026.

• Confident in maintaining dividends and funding growth post-Kestrel acquisition.