Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — H1 2012 Earnings Presentation
22 slides from Yancoal Australia's earnings presentation, Aug 20, 2012
Slide 1: Yancoal Australia Ltd First Half Results 2012
Yancoal Australia Ltd First Half Results 2012 For personal use only August 2012 Murray Bailey CEO
Slide 2: Disclaimer
Disclaimer Summary of information For personal use only 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: Contents
For personal use only Contents Highlights Business Results Asset Profile Coal Market Review & Outlook Company Outlook 3 20 August 2012 3
Slide 4: Highlights
For personal use only Highlights Completed the merger with Gloucester to create one of Australia’s largest coal companies Successfully listed on the ASX Refinanced debt facilities to obtain a more attractive maturity profile Growth projects including Moolarben Stage 2 and Middlemount continu
Slide 5: Business Results - Financials
For personal use only Business Results - Financials 5 20 August 2012 5
Slide 6: Financial Results
For personal use only Financial Results Yancoal reported a profit of $415.7 million for the first half The result for the first half does not include any contribution from Gloucester as the merger of Yancoal and Gloucester was effective from 27 June 2012 Profit Results for 2012 and 2011 with acc
Slide 7: Balance sheet
Balance sheet The balance sheet as at 30 June 2012 represents the balance sheet for the For personal use only merged company i.e. Yancoal and Gloucester combined SIMPLIFIED 30 June 2012 31 Dec 2011 BALANCE SHEET $m's $m's Cash 343.9 291.0 Current Assets 891.8 824.5 Non Current Assets 6,937.3 4,685
Slide 8: Business Results - Operating
For personal use only Business Results - Operating 8 20 August 2012 8
Slide 9: Half Year production
Half Year production ROM Coal Production (Mt) (Equity Share) For personal use only Coal output in the half year by the merged company 12.0 was 9.8 Mt ROM coal (equity share), 31% higher than 10.0 in the previous corresponding period and on target to 8.0 exceed the previous full year output 6.0 S
Slide 10: Coal Sales
For personal use only Coal Sales Coal sales for the merged company (equity basis) were 7.1Mt for the half year Sales exceeded production despite weakening coal markets during the half Some metallurgical coal was sold at energy adjusted thermal coal prices with metallurgical coal sales represen
Slide 11: Asset Profile
For personal use only Asset Profile 11 20 August 2012 11
Slide 12: Snapshot
For personal use only Snapshot Seven operating mines Coal products – SHCC, SSCC, LV PCI, PCI, Thermal Operations in Queensland and New South Wales Resources 3,808Mt and Reserves 814Mt (100% basis) Infrastructure – 27% ownership of NCIG and 5.6% of Wiggins Island Port Allocation – 2012, 2
Slide 13: Overview of Yancoal Assets
Overview of Yancoal Assets Yancoal operates seven mines which are geographically spread across Queensland and New South For personal use only Wales producing a range of products which are exported through several coal terminals in both States Yarrabee Operating & Development Middlemount Operating &
Slide 14: Infrastructure positioning
For personal use only Infrastructure positioning Yancoal’s is one of the best positioned coal mining companies in Australia with both port and rail allocation contracted or committed to grow in line with increasing coal output from its mines in Queensland and New South Wales Notes: Yancoal Port Al
Slide 15: Mine operations & development
Mine operations & development Moolarben For personal use only • Responded to the public submissions as part of the Stage 2 expansion approval process • Advanced work on the Stage 2 Definitive Feasibility Study (DFS) - open cut ROM coal output in Stage 2 is scheduled to increase from 8Mtpa to 13Mtp
Slide 16: Mine operations & development
Mine operations & development Donaldson For personal use only • The mine achieved several records during the half year - ROM production, ROM feed to the CHPP and saleable product • An improvement programme using “LEAN” methodology designed to reduce costs and increase production began to show posi
Slide 17: Coal Market Review & Outlook
For personal use only Coal Market Review & Outlook 17 20 August 2012 17
Slide 18: Metallurgical coal review & outlook
Metallurgical coal review & outlook Metallurgical Coal Prices For personal use only Metallurgical coal prices have been declining since mid 2011 as demand in several of the major consuming countries fell however prices firmed in Q2, 2012 when the BMA industrial dispute reduced supply to the market
Slide 19: Thermal coal review & outlook
Thermal coal review & outlook Thermal Coal Prices For personal use only The thermal coal price fell during the first half as supply overwhelmed subdued economic activity in a number of regions across the world China cut coal output targets in some regions in order to ease a supply glut caused by
Slide 20: Company Outlook
For personal use only Company Outlook 20 20 August 2012 20
Slide 21: Outlook
For personal use only Outlook Yancoal is considering all options to reduce costs Expansion plans across all mines will be reviewed and ranked to ensure that the appropriate capital expenditure discipline is maintained Resources will be invested to ensure that the synergies identified during th
Slide 22: Thankyou
For personal use only Thankyou