Yancoal Australia (YAL) Q2 2026 earnings summary

Executive summary

• Achieved a quarterly production record of 10.8 million tons of attributable saleable coal in 2Q 2026, up 20% sequentially, and a first-half record of 19.8 million tons, 5% ahead year-over-year.

• Attributable sales reached 11.6 million tons, with a realized coal price up 9% to AUD 160/tonne.

• Moolarben and Mount Thorley Warkworth mines exceeded targets, with Moolarben’s saleable coal production up 23% and MTW up 34% sequentially.

• The acquisition of an 80% interest in the Kestrel Coal Mine was announced, with completion targeted by end of Q3 2026, expected to diversify and strengthen the production portfolio.

• Decision made to cease Ashton mine operations from early 2028 due to technical and economic challenges, with support measures for affected employees.

Financial highlights

• Ended Q2 with a cash balance of over AUD 2 billion (USD 2.01 billion), steady with the previous quarter despite paying AUD 1.61 billion in final dividends and a deposit for Project Kestrel.

• Average realized coal price increased to AUD 160/tonne in 2Q 2026, up 9% sequentially and 13% year-over-year.

• Attributable sales volume for 2Q 2026 was 11.6Mt, up 41% from the prior quarter.

• Strong operating cash flow maintained, with temporary cash flow volatility due to timing of payments and receipts.

• Attributable saleable coal production for the first half of 2026 was 19.8Mt, 5% ahead of 2025.

Outlook and guidance

• On track to exceed last year’s production record and deliver in the upper half of 2026 guidance (36.5–40.5Mt attributable saleable production).

• Capital expenditure for 2026 projected at the low end of the $750–900 million range, with some spend deferred to 2027.

• Cash operating costs expected at AUD 90–98/tonne, trending toward the upper half due to diesel prices but not at the top end.

• Dividend policy remains at 50% of NPAT or free cash flow, whichever is higher, subject to Board approval.

• No immediate plans for equity capital raising.