Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — FY2024 Earnings Presentation
38 slides from Yancoal Australia's earnings presentation, Feb 20, 2025
Slide 1: Overseas Regulatory Announcement
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 2024 Financial Results
Yancoal Australia 2024 Financial Results 20 February 2025
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 $6.86 billion Revenue, 6.7 TRIFR rate $2.58 billion Operating EBITDA (remains below weighted industry average) (37% Operating EBITDA margin). 62.7Mt ROM production (100%), $1.22 billion Profit after Tax, 47.8Mt Saleable production (100%), $0.92 earnings per share. 36.9Mt
Slide 6: Safety Performance
Safety Performance Yancoal 12mth rolling TRIFR and LTIFR 10.0 ◦ The 12-month rolling TRIFR was 6.7, an 8.0 increase from 5.1 at the end 2023. ◦ Still below the comparable industry weighted 6.0 average of 8.4. ◦ Remain committed to improving the trend 4.0 through targeted safety intervention activiti
Slide 7: Sustainability
Sustainability ◦ 2023 Sustainability Report integrated ESG information with revised sustainability disclosure. ◦ Commenced the development of systems and processes in preparation for increased disclosure requirements under ASRS, and HKEX and ASX requirements. ◦ The 2024 Sustainability Report will be
Slide 8: Operational Performance
Operational Performance Operating factors 2024 2023 Change Observations ROM coal production, (Mt) 62.7 60.2 4% Performance in the second-half reaffirms Saleable coal production, (Mt) 47.8 43.6 10% the production rates that our portfolio of high-quality mines can achieve. Attributable coal production
Slide 9: ROM Coal Production
ROM Coal Production ROM Production by Asset (100% basis)*, million tonnes 68.1 ◦ Total ROM mined (100% basis) was 62.7Mt, an 63.2 62.7 60.2 increase of 4% from 2023. 50.5 ◦ Investment in additional water storage capacity, means the mines are better placed to face both dry and wet condition. Mines cu
Slide 10: Saleable Coal Production
Saleable Coal Production Attributable Saleable Production by Asset*, million tonnes 51.8 48.5 47.8 ◦ Attributable saleable coal production, 43.6 38.9 increased 10% compared to 2023. 38.3 36.9 36.7 33.4 ◦ Quarter-by-quarter profile was 8.8Mt, 8.2Mt, 29.4 10.2Mt and 9.7Mt; second-half uplift forecast
Slide 11: Australian Thermal Coal Mines (energy adjusted)
Australian Thermal Coal Mines (energy adjusted) 200 175 Low cost mines 150 Total cash costs, US$/t 125 100 MTW HVO 75 MCO 50 Large scale mines 25 0 2 4 6 8 10 12 14 16 18 20 22 Annual production, Mt Yancoal’s large scale, low cost mines underpin its competitive position Source: Wood Mackenzie, Globa
Slide 12: Cash Operating Costs
Cash Operating Costs Cash operating costs (per product tonne), A$/tonne ◦ Cash operating costs per saleable production 94 96 93 tonne decreased by $3/t to $93/t in 2024. 16 16 16 ◦ Full year cash operating costs comprised 67 59 20 21 20 $101/t in 1H and $86/t in 2H. 11 10 ◦ The key driver of the 3%
Slide 13: Operating Cash Margin
Operating Cash Margin Operating cash margin (per product tonne), A$/tonne ◦ Implied cash operating margin of $66/t ◦ Quality of our asset portfolio allows 251 generation of margins through coal price cycles. 115 ◦ Increased cash operating costs common 66 across the coal sector, with increasing 63 33
Slide 14: Thermal Coal Market
Thermal Coal Market Thermal coal indices & Yancoal's average thermal coal sale price* ◦ 2024 was a year of supply recovery with 200 relatively stable pricing. Australian thermal coal 150 exports increased 2% in 2024 and most other export countries increased export sales. 100 ◦ China and India domina
Slide 15: Metallurgical Coal Market
Metallurgical Coal Market Metallurgical coal indices & Yancoal's average met. coal sale price* ◦ Metallurgical coal markets exhibited declining 300 demand in 2H 2024 driven by weak steel market 250 conditions as global steel output fell ~6% 200 compared to 2023. 150 ◦ China’s demand growth continued
Slide 16: Product Mix
Product Mix Attributable sales volume* (million tonnes) ◦ Yancoal optimises its product mix based on 37.9 37.5 37.7 the mine geology and available coal. 4.2 33.1 5.2 5.8 29.3 4.7 4.7 ◦ Thermal coal products range from medium- CV to high-CV; low-ash to high-ash 33.7 32.5 specification. 31.7 28.4 24.6
Slide 17: Sales Volume and Revenue Split
Sales Volume and Revenue Split 2023 Revenue 21% 29% 15% 19% 5% 4% 3% 2% 3% 2024 Revenue 29% 28% 14% 15% 6% 3% 3% 2023 Volume 29% 13% 16% 13% 11% 5% 5% 2% 5% 2024 Volume 36% 16% 14% 11% 10% 2% 2% 7% —% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% China Japan South K
Slide 18: Thermal Coal Market Demand Profile
Thermal Coal Market Demand Profile WoodMackenzie coal generation capacity forecasts across historical base cases 1H 2021 1H 2022 1H 2023 1H 2024 2H 2024 ◦ Analyst forecasts for global coal-fired 2,300 power capacity generation continue to be revised in response to strong electricity 2,200 demand. 2,
Slide 19: Thermal Coal Market Supply Elements
Thermal Coal Market Supply Elements Thermal Coal - Total Seaborne Exports (Mt) 1200 ◦ Generation capacity peak aligns with a 1000 potential forecast supply decline in late 2020s. 800 ◦ New mine development challenges and finance restrictions accelerate reserve 600 exhaustion in the coming years. 400
Slide 20: Metallurgical Coal Market Demand
Metallurgical Coal Market Demand Metallurgical Coal - Total Seaborne Imports (Mt) 400 ◦ Global seaborne demand to see 350 diverging growth patterns as 300 emerging economies grow their 250 consumption. 200 150 ◦ Growing demand from India and Southeast Asia to outpace the 100 projected demand decline
Slide 21: Metallurgical Coal Market Supply
Metallurgical Coal Market Supply Metallurgical Coal - Total Seaborne Exports (Mt) 400 350 ◦ Total global seaborne metallurgical coal supply 300 projected to reach 336 Mt by 250 2034, following a decline to 325 200 Mt in the short-term. 150 100 ◦ Australia’s supply increases out to 2030 as new supply
Slide 22: Financial Performance
Financial Performance Income Statement 2024 2023 Change Observations Revenue, ($ million) 6,860 7,778 (12)% Operating EBITDA, ($ million) 2,579 3,489 (26)% Lower realised price impacted Operating EBIT, ($ million) 1,829 2,608 (30)% Revenue; this impact extended to EBITDA, EBIT and Profit figures. Pr
Slide 23: Price, Revenue and Operating EBITDA
Price, Revenue and Operating EBITDA Revenue and Average realised price Operating EBITDA and Margin (A$ Million) | (A$/tonne) (A$ Million) | (%) 378 65% 46% 45% 232 37% 176 141 10,548 6,959 21% 7,778 82 6,860 5,404 3,489 2,531 2,579 3,473 748 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Revenue
Slide 24: Profit and Operating cash flow
Profit and Operating cash flow Profit after tax Operating cash flow (A$ Million) (A$ Million) 3,586 6,528 1,819 1,216 791 (1,040) 2,133 1,900 1,261 605 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Profit / (Loss) after tax Net cash inflow from operating activities Income tax distorted 1H 2023 c
Slide 25: Debt and Gearing
Debt and Gearing Annual Net Debt and Gearing Ratio* (A$ Million) | (%) ◦ Over US$3.0 billion in loan repayments from 41% late 2021 to early 2023. 24% ◦ Early repayments delivered over $300 million in finance cost savings during 2023 and similar savings in 2024. 3,568 1,940 ◦ Net cash position and ef
Slide 26: Dividend
Dividend Dividend and Payout Ratio ◦ 2024 Final dividend of $687 million (A$ per share) | (%) 118% fully franked to be paid in April 2025, will bring total dividends paid to over $5.0 billion. $0.70 ◦ 2024 divided represents a 56% 60% 58% 56% 45% 50% payout ratio. $0.20 $0.33 ◦ Franking credits of $
Slide 27: 2025 Operational Expectations
2025 Operational Expectations Operating component Guidance and outlook During 2025, aim to operate at levels similar to 2024. Attributable saleable coal production Output likely lower in 1Q 2025 due to mine plan sequencing. Attributable saleable production of 35-39 million tonnes. Much of the cost i
Slide 28: Reflecting on 2024 and looking to 2025 and beyond
Reflecting on 2024 and looking to 2025 and beyond Average tenure of senior leadership is 11 years with Yancoal and Experienced Executive Committee 26 years in mining and related sectors. Looking for the next CEO to further strengthen the team and the Company. In 2024, we delivered on our guidance an
Slide 29: Appendices and Additional Information
Appendices and Additional Information 28
Slide 30: Yancoal Overview
Yancoal Overview Milestones in Yancoal’s growth 2024 - Celebrated 20th Anniversary. Included in the S&P/ASX 200 index from September 2024. 2023 – Repaid the last external loans. Included in the Hang Seng Composite Index from March 2023. 2022 – $10.5 billion record revenue and $3.6 billion profit aft
Slide 31: Yancoal Operations Summary
Yancoal Operations Summary • Interest in 6 producing coal mines and operates 2 mines on management contracts. • Total annual production across the 8 mines is ~70 million tonnes of ROM coal and ~55 million tonnes of saleable coal. Nearly all saleable coal enters the export market. Mount Thorley Hunte
Slide 32: State Royalties
State Royalties Queensland After 1 July 2022 Before 1 July 2022 Coal price, A$/t Royalty rate Royalty rate < 100 7% 7% 100 - 150 12.5% 12.5% > 150 _ 15% 150 - 175 15% _ 175 - 225 20% _ 225 - 300 30% _ > 300 40% _ New South Wales After 1 July 2024 Before 1 July 2024 Royalty rate Royalty rate Open-cut
Slide 33: Capital expenditure
Capital expenditure Capex and Capex intensity* (A$ Million) | (A$/t) 1,000 50 ◦ Multi-year fleet replacement cycle at MTW and HVO commenced 2022. 800 40 702 ◦ Like the cash operating costs, 621 600 548 30 inflation factors are also present in capital expenditure activities. 400 282 278 269 20 ◦ Whil
Slide 34: Yancoal Reserves and Resources
Yancoal Reserves and Resources • Mining depletion was the primary driver of changes in Coal Resources and Coal Reserve from 31 December 2023 to 31 December 2024. • Stratford Duralie (also referred to as Gloucester) concluded coal extraction activities during the year and moved to closure activities.
Slide 35: Yancoal potential extensions, expansions and projects
Yancoal potential extensions, expansions and projects 2025 2026 Commentary Complete value The MTW underground mine project studies are subject to further value assessments engineering including synergies with the open-cut, which could enable a feasibility study to MTW Underground assessments prior c
Slide 36: Yancoal Market Capitalisation and Daily Turnover
Yancoal Market Capitalisation and Daily Turnover ASX - A$/sh ADT ◦ 1.32 billion shares for an approximate market 8.00 10.0 capitalisation of A$8.4 billion. 7.00 7.5 ◦ Shares are fully fungible between the two 6.00 5.0 exchanges. ◦ Hang Seng Composite Index and Stock Connect 5.00 2.5 inclusion 13 Mar
Slide 37: Dual listed on ASX and HKEX - Shares fully fungible
Dual listed on ASX and HKEX - Shares fully fungible Summary share register (31 December 2024) ◦ 49% of shares held on ASX, and Yankuang Energy 822,157,715 62.26% 51% of shares held on HKEx. Cinda * 101,601,082 7.69% ◦ Average daily turnover 2024: Management & YAL Trust 8,137,999 0.62% Freefloat ^ 38
Slide 38: Investor Relations Contact
Investor Relations Contact: Brendan Fitzpatrick, GM Investor Relations - Brendan.Fitzpatrick@yancoal.com.au Media Relations Contact: Matthew Gerber, GM Corporate Affairs - Matthew.Gerber@yancoal.com.au Additional information - www.yancoal.com.au Yancoal Australia Ltd Level 18, Tower 2, 201 Sussex St