Yancoal Australia (YAL) investor relations material

Executive summary

• Announced acquisition of an 80% stake in Kestrel Coal Mine for US$1.85 billion plus contingent consideration, expected to complete in late Q3 2026, adding a long-life, high-margin hard coking coal asset and diversifying the portfolio to increase metallurgical coal share to 22% on a pro forma basis.

• 1Q 2026 ROM coal production was 15.0Mt (100% basis), with 11.9Mt saleable coal and 9.0Mt attributable saleable coal; attributable coal sales were 8.2Mt, slightly below last year.

• Maintained focus on existing portfolio performance and disciplined capital management while pursuing growth.

• Operations ran to plan with production and sales slightly below last year, but positioned for output growth in subsequent quarters.

• Cash balance at 31 March 2026 stood at over AUD 2 billion.

Financial highlights

• Attributable saleable coal production decreased 5% year-over-year and 14% sequentially; attributable coal sales were down 2% year-over-year and 24% sequentially.

• Average realized coal price was AUD 146 per ton, with thermal coal at AUD 134 per ton (down 3% QoQ) and metallurgical coal at AUD 213 per ton (up 5% QoQ); overall average realized price fell 7% year-over-year.

• Paid a fully franked final dividend of AUD 0.122 per share for 2025, totaling AUD 151 million, and declared a fully franked final dividend of AUD 12.2 cents per share paid 15 April 2026.

• Cash operating costs are trending toward the upper end of the AUD 90–98 per ton guidance due to higher diesel prices.

Outlook and guidance

• 2026 production guidance unchanged: 36.5–40.5Mt attributable saleable production, AUD 90–98 per ton cash operating costs, and AUD 750–900 million capital expenditure.

• Higher realized coal prices anticipated from Q2 onwards as index increases flow through contracts.

• Dividend policy remains unchanged at 50% of free cash flow or NPAT, whichever is higher.