Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — H1 2013 Earnings Presentation
23 slides from Yancoal Australia's earnings presentation, Aug 19, 2013
Slide 1: Yancoal Australia Ltd 2013 Half Year Results
For personal use only Yancoal Australia Ltd 2013 Half Year Results 16 August 2013
Slide 2: Disclaimer
Disclaimer For personal use only Summary of information This Presentation contains summary information about Yancoal Australia Ltd (“Yancoal”, “Yancoal Australia” or the “Company”) and its subsidiaries and their activities. It should be read in conjunction with Yancoal’s other periodic and continuou
Slide 3: Table of Contents
Table of Contents For personal use only 1. Highlights contents 2. Financial Results Summary 3. Operational Results Summary 4. Key Achievements 5. Outlook 6. Appendix 3 3
Slide 4: Highlights: Key Achievements
Highlights Key Achievements For personal use only Strong production from across the portfolio Record quarterly production at Moolarben, Yarrabee and Abel Successfully managing on-site unit cash costs and on track to meet 15% reduction targets for FOR cash costs per product tonne Significant reductio
Slide 5: Table of Contents
Table of Contents For personal use only 1. Highlights contents 2. Financial Results Summary 3. Operational Results Summary 4. Key Achievements 5. Outlook 6. Appendix 5 5
Slide 6: Key Financials
Financial Results Summary Key Financials For personal use only Operating EBIT of ($109.3m) in 1H 2013 Six months ended June (A$m) 1H 2013 1H 2012 Change (%) Revenue from ordinary activities 718.4 601.2 +19.5% Operating EBIT (109.3) 50.9 -314.7% PBT before non-recurring items (697.0) 42.2 -1,751.4% P
Slide 7: Breakdown of Significant Items
Financial Results Summary Breakdown of Significant Items For personal use only (A$m) 1H 2013 Operating EBIT (109.3) Finance Costs (59.6) Interest expense Re-measurement of CVRs based on Mark-to-market on CVR shares (20.2) market value Re-measurement of joint venture royalty Re-measurement of royalty
Slide 8: Operating EBIT Comparison
Financial Results Summary Operating EBIT Comparison For personal use only Decline in operating EBIT but directly controllable volumes and costs well managed Operating EBIT (A$m 1H2012 vs 2H2013) Directly Controllable 200 100 50.9 - (100) (109.3) (200) 1H 2012 Operating Production Operating Costs Pri
Slide 9: Table of Contents
Table of Contents For personal use only 1. Highlights contents 2. Financial Results Summary 3. Operational Results Summary 4. Key Achievements 5. Outlook 6. Appendix 9 9
Slide 10: Production and Sales Tonnages
Operational Results Summary Production and Sales Tonnages For personal use only Six months ended June (‘000 tonnes) 1H 2013 1H 20121 Change (%) 100% basis ROM coal production 12,348 11,147 +10.8% Saleable coal production 8,676 7,733 +12.2% Coal sales 8,666 8,113 +6.8% Equity share ROM coal productio
Slide 11: Production Volumes by Site
Operational Results Summary Production Volumes by Site For personal use only Six months ended June (‘000 tonnes) 1H 2013 1H 20121 Change (%) Equity share Saleable coal production Ashton 411 403 +2.0% Austar2 304 616 -50.6% Moolarben 2,469 2,064 +19.6% Yarrabee 1,290 1,126 +14.6% Stratford & Duralie
Slide 12: Sales Volumes and Mix
Operational Results Summary Sales Volumes and Mix For personal use only Six months ended June (‘000 tonnes) 1H 2013 1H 2012 Change (%) Equity share Sales Mix 1H 2013 Coal sales Metallurgical 39% Ashton 395 484 -18.4% Thermal 61% Austar 452 756 -40.2% Moolarben 2,278 2,017 +13.0% Sales Mix 1H 2012 Ya
Slide 13: Table of Contents
Table of Contents For personal use only 1. Highlights contents 2. Financial Results Summary 3. Operational Results Summary 4. Key Achievements 5. Outlook 6. Appendix 13 13
Slide 14: Key Achievements: Operations
Key Achievements Operations For personal use only Ashton Mining of the second seam, the Upper Liddell seam (ULD), at the underground mine commenced South East Open Cut (SEOC) merits appeal to be heard in the Land and Environment Court in Q3 2013 Austar Longwall production commenced in the new Stage
Slide 15: Key Achievements: Operations (cont.)
Key Achievements Operations (cont.) For personal use only Stratford & Duralie Stratford Extension Project awaiting NSW DP&I assessment Donaldson Tasman Extension Project approved by Minister of DP&I Continued roll out of the LEAN business improvement program – significant results on both development
Slide 16: Key Achievements: Unit Cash Costs
Key Achievements Unit Cash Costs For personal use only FOR cash costs trending downwards and on track to achieve 15% reduction on 1H 2012 Early adopters of LEAN business improvement program showing significant improvements Donaldson FOR Cash Costs (A$/t sold)1,2 Yancoal Weighted Average FOR Cash Cos
Slide 17: Key Achievements: Merger Synergies
Key Achievements Merger Synergies For personal use only The majority of synergies are only scheduled to be realised from 2014 onwards Nevertheless, progress has been made with material value now being realised Leveraging Unutilised Port Capacity Reduction in Peak Railings and Logistics Savings • Usi
Slide 18: Table of Contents
Table of Contents For personal use only 1. Highlights contents 2. Financial Results Summary 3. Operational Results Summary 4. Key Achievements 5. Outlook 6. Appendix 18 18
Slide 19: Overall Outlook
Overall Outlook For personal use only Yancoal continues to encourage productivity gains and reductions in costs across all its sites to maintain its competitiveness Favourable trends in directly controllable FOR cash costs Targeting growth projects that deliver returns for its shareholders Focus tow
Slide 20: Company Outlook: Major Growth Projects
Company Outlook Major Growth Projects For personal use only Optimisation work continues however still awaiting regulatory approvals Moolarben Stage 2 On a 100% basis, Stage 2 will increase open cut output from 8.0Mtpa to 13Mtpa ROM coal (product 5.6Mtpa to 9.0Mtpa) The NSW DP&I is currently reviewin
Slide 21: Coal Market Outlook
Coal Market Outlook For personal use only Metallurgical Coal Thermal Coal In response to price reductions Recent supply disruptions in during the last year, Australian and Colombia and Australia due to Canadian producers have focussed industrial action did not have the on cutting costs and increasin
Slide 22: Table of Contents
Table of Contents For personal use only 1. Highlights contents 2. Financial Results Summary 3. Operational Results Summary 4. Key Achievements 5. Outlook 6. Appendix 22 22
Slide 23: Appendix: Asset Overview
Appendix Asset Overview For personal use only Yancoal operates 7 mines and 1 exploration project in NSW and QLD Coal is exported through several coal terminals in both states Yarrabee Operating & Development Middlemount Operating & Development 100% owned ~50% owned Open cut Open-cut Low volatile PCI