Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — FY2023 Earnings Presentation
31 slides from Yancoal Australia's earnings presentation, Feb 25, 2024
Slide 1: Voluntary Announcement: 2023 Financial Results Investor Presentation
Australian Securities Exchange, Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss ho
Slide 2: Yancoal Australia 2023 Financial Results
Yancoal Australia 2023 Financial Results 23 February 2024 Investor Relations Contact: Brendan Fitzpatrick, GM Investor Relations - Brendan.Fitzpatrick@yancoal.com.au Yancoal Australia Ltd Media Relations Contact: Matthew Gerber, Level 18, Tower 2, 201 Sussex Street, GM Corporate Affairs - Matthew.Ge
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Acceptance - This presentation is issued by Yancoal Australia Limited ABN 82 111 859 119 (“Yancoal”). By accepting, accessing or reviewing this presentation, you acknowledge and agree to the terms set out in this Important Notice and Disclaimer. Summary of information
Slide 4: Important Notice and Disclaimer
Important Notice and Disclaimer Reserves and Resources Reporting - In this presentation, references to mineral resources (“Resources”) and ore reserves (“Reserves”) for Yancoal are compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (“JO
Slide 5: Financial Results Highlights
Financial Results Highlights $7.8 billion Revenue 35% reduction in TRIFR rate $3.5 billion Operating EBITDA (45% margin) to 5.1 over 2023 $1.8 billion Profit after Tax 60.2Mt ROM production (100%) $1.4 billion of cash (31 Dec 2023) 43.6Mt Saleable production (100%) No interest-bearing loans 33.4Mt S
Slide 6: Safety Performance
Safety Performance YAL Sites 12 month rolling TRIFR and LTIFR ➢ Sustained TRIFR reduction demonstrates the effectiveness of existing programs, and active 10 engagement of the workforce. 9 8 ➢ Continued improvement in the LTIFR rate. 7 ➢ Yancoal was a finalist in the 2023 Australian 6 Workplace Healt
Slide 7: Sustainability
Sustainability ➢ In April 2024, the Group will publish its first Sustainability Report that integrates “Environment, Social & Governance” information with revised sustainability disclosures. ➢ The Sustainability Report will be transitional, as Yancoal develops and implements systems to comply with r
Slide 8: 2023 Operational Performance
2023 Operational Performance Operating factors 2023 2022 Change Observations ROM coal production, (Mt) 60.2 50.5 19% Delivered on 2023 production guidance. Saleable coal production, (Mt) 43.6 38.9 12% Production uplift in every quarter. Attributable coal production, (Mt) * 33.4 29.4 14% Thermal coal
Slide 9: Thermal Coal Market Conditions
Thermal Coal Market Conditions Thermal benchmarks & ➢ Coal price indices depreciated in 2023 as YAL Average thermal coal sale price* supply conditions recovered and a weaker (US$/t) 500 global economy affected demand. 450 ➢ Australian and Indonesian exports increased 400 by 22% and 12% respectively
Slide 10: Metallurgical Coal Market Conditions
Metallurgical Coal Market Conditions Met. coal benchmarks & YAL Average met. coal sale price* ➢ Metallurgical coal indices appreciated in the (US$/t) mid-year market, due to North American 700 supply disruptions, before depreciating due to 600 low demand resulting from economic 500 pressures. 400 ➢
Slide 11: Product Mix and Sales Volume Split
Product Mix and Sales Volume Split Attributable sales volume** (Million tonnes) ➢ Responded to market conditions in 2023 and Thermal Metallurgical rebalanced the customer base, resuming coal 40 37.9 35.6 37.5 exports to China as trade flows normalised 35 4.2 33.1 5.5 5.8 and South Africa and Columbi
Slide 12: Product Mix and Sales Volume Split
Product Mix and Sales Volume Split Revenue split from segment reporting Thailand, 5% Vietnam, 4% Australia, 2% 2023 China, 21% Japan, 29% South Korea, 15% Taiwan, 19% Europe, 0% India, 3% Balance, 2% Thailand, 4% Vietnam, 5% Australia, 1% 2022 Japan, 35% South Korea, 14% Taiwan, 23% China, 0% Europe
Slide 13: ROM Coal Production
ROM Coal Production ROM Production by Asset (100% basis)* ➢ Total ROM mined (100% basis) was 60.2Mt, an (Million tonnes) Moolarben Mt Thorley Warkworth Hunter Vally Operations increase of 19% from 2022. Output increased Yarrabee Ashton Stratford Duralie Middlemount every quarter as recovery plans to
Slide 14: Saleable Coal Production
Saleable Coal Production Attributable Saleable Production by Asset * (Million tonnes) Moolarben MTW HVO Yarrabee ➢ Attributable saleable coal production, Ashton Stratford Duralie Non-attributable increased quarter-by-quarter throughout the 60 52.1 51.8 year: 5.9Mt, 8.5Mt, 9.3Mt and 9.7Mt. 48.5 50 43
Slide 15: Cash Operating Costs
Cash Operating Costs Cash operating costs (per product tonne) ➢ Although cash operating costs, excluding (A$/tonne) government royalties, of A$96/t were similar Raw materials Employee benefits Transportation Contracting Other to 2022, it combines first half costs of $109/t 120 that fell to $86/t in
Slide 16: Operating Cash Margin
Operating Cash Margin Operating cash margin (per product tonne) (A$/tonne) ➢ Coal prices have retreated from 2022 levels in Cash operating costs Royalty Implied operating cash margin response to international energy market 400 conditions but were still robust. 350 ➢ Royalties were down $8/tonne from
Slide 17: 2024 Operational expectations
2024 Operational expectations Operating component Guidance and outlook Yancoal aims to continue operating at levels similar to 2H 2023, noting mine plans, Attributable saleable coal production vary quarter to quarter and could be skewed towards the second half. Attributable saleable production of 35
Slide 18: 2023 Financial Performance
2023 Financial Performance Income Statement ($ millions) 2023 2022 Change Observations Revenue 7,778 10,548 (26%) Lower realised sale price versus 2022 Operating EBITDA 3,489 6,959 (50%) Additional costs associated with the recovery plans Operating EBIT 2,608 6,125 (57%) Depr. & Ammort. consistent w
Slide 19: Prices, Revenue and EBITDA
Prices, Revenue and EBITDA Revenue and Average realised price Operating EBITDA and Margin (A$ Million) | (A$/tonne) (A$ Million) | (%) Revenue Average selling price, A$/t Operating EBITDA EBITDA Margin 12,000 378 400 8,000 65% 350 7,000 10,000 300 6,000 46% 45% 8,000 232 250 5,000 36% 6,000 200 4,00
Slide 20: Profit and Operating Cashflow
Profit and Operating Cashflow Profit / (Loss) after tax Operating cash flow (A$ Million) (A$ Million) Profit / (Loss) after tax Net cash inflow from operating activities 4,000 7,000 3,586 6,528 6,000 3,000 5,000 2,000 1,819 4,000 1,000 719 791 3,000 - 1,900 2,000 1,548 1,261 (1,000) 1,000 605 (1,040
Slide 21: Debt and Gearing
Debt and Gearing Annual Net Debt and Gearing Ratio* (A$ million) | (%) ➢ Paid US$333 million loan ahead of schedule in Net debt Net gearing, % March 2023 reducing loans to nil. 4,000 41% ➢ Combined with US$2.76 billion repaid since 3,000 late 2021 delivered over $300 in million 2,000 29% finance cos
Slide 22: Dividend
Dividend Dividends (A$ million) Interim Div. (uf) Final Div. (uf) Special Div. (uf) ➢ 2023 Final dividend allocation is Interim Div. (ff) Final Div. (ff) Payout ratio $429 million, A$0.3250/share (fully franked). 1,800 ➢ 2023 Interim dividend allocation was 1,600 118% $489 million, A$0.3700/share (f
Slide 23: Appendices and Additional Information
Appendices and Additional Information 22
Slide 24: Executive Leadership Team
Executive Leadership Team 23
Slide 25: Yancoal overview
Yancoal overview Map of Yancoal operations Milestones in Yancoal’s growth 2023 – Repaid the last external loans. Paid dividends to shareholders of $918 million (or A$0.695/share). 2022 – $10.5 billion record revenue and $3.6 billion profit after tax of. Paid dividends to shareholders of $1.6 billion
Slide 26: Yancoal operations summary
Yancoal operations summary ➢ An interest in 7 producing coal mines and operates 2 mines on management contracts. ➢ Total annual production across the 9 mines is about 70 million tonnes of ROM coal and 55 million tonnes of saleable coal, and nearly all saleable coal enters the export market. Mount Th
Slide 27: Yancoal Reserves and Resources (at December 2023)
Yancoal Reserves and Resources (at 31 December 2023) ➢ Mining depletion was the primary driver of changes in Coal Resources and Coal Reserve from 2022 to 2023. ➢ HVO concluded a multi-year geological review, resulting in an uplift to the Measured & Indicated Resource, while the lessor Indicated Reso
Slide 28: Stratford Renewable Energy Hub
Stratford Renewable Energy Hub ➢ Renewable energy hub could provide an excellent opportunity for the beneficial re- use of land and support the energy market transition. ➢ Feasibility study is underway, and concept remains subject to permitting requirements and relevant approval processes. ➢ Central
Slide 29: Yancoal market capitalisation and daily turnover
Yancoal market capitalisation and daily turnover ➢ 1.32 billion shares for an approximate market capitalisation A$/sh ASX - A$/sh and Shares traded ADT mn 7.50 14.0 of A$7.5 billion. 7.00 6.50 12.0 ➢ 50% of shares held on ASX and 50% of shares held on HKEx. 6.00 10.0 ➢ Shares are fully fungible betw
Slide 30: Dual listed on ASX and HKEx – shares fully fungible
Dual listed on ASX and HKEx – shares fully fungible Summary share register (31-Dec-23) 12 Month Share price activity 8.00 40.00 Yankuang Energy 822,157,715 62.26% 7.00 35.00 Cinda * 157,864,967 11.96% 6.00 30.00 HKD/Share A$/share Management 873,282 0.07% 5.00 25.00 Freefloat 339,543,473 25.71% 4.00
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