Yancoal Australia (YAL) Q2 2024 earnings summary

Executive summary

• Attributable sellable coal production increased 18% year-over-year for the first half of 2024, consolidating operational recovery begun in 2023.

• Cash position grew by AUD 318 million in Q2, ending June debt-free with AUD 1.55 billion in cash after a AUD 429 million dividend payout.

• Production volumes were impacted by wet weather, but mitigation measures limited losses and maintained forecast volumes.

• Safety remains a focus, with a 12-month rolling TRIFR of 7.0, up from 6.0 in Q1 2024 but still below the industry average of 8.7.

• Production guidance for 2024 remains unchanged, with expectations for higher volumes in the second half.

Financial highlights

• Average realized coal price was AUD 181 per ton in Q2, stable quarter-on-quarter but down 20% year-over-year.

• Attributable sales were 8.6 million tons, with 88% thermal and 12% metallurgical coal.

• Realized thermal coal price averaged AUD 163/t (up 2% sequentially), metallurgical coal AUD 318/t (down 5% sequentially).

• No debt at quarter-end, and significant cash reserves maintained.

• Attributable saleable coal production was 8.2Mt, down 7% sequentially but up 18% year-over-year.

Outlook and guidance

• 2024 production guidance unchanged: 35–39Mt attributable saleable production, $89–97/t cash operating costs, $650–800 million capital expenditure.

• Production volumes are expected to increase in the second half, mirroring last year’s pattern and tracking at the low end of full-year guidance after 1H.

• Cost per ton is anticipated to decrease in the second half as production rises.

• No change to 2024 production guidance; strong second half performance expected.