Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — H1 2021 Earnings Presentation
19 slides from Yancoal Australia's earnings presentation, Aug 19, 2021
Slide 1: Half-Year Financial Report Presentation
YANCOAL AUSTRALIA LTD ADDRESS: Level 18, Tower 2, 201 Sussex Street, Sydney NSW 2000 PHONE: 61 2 8583 5300 FAX: 61 2 8583 5399 WEBSITE: www.yancoal.com.au 19 AUGUST 2020 ASX Release: HALF-YEAR FINANCIAL REPORT PRESENTAION For the half-year ended 30 June 2021 Authorised for lodgement by the Yancoal B
Slide 2: 2021 Half-year Financial Result
Yancoal Australia Ltd 2021 Half-year Financial Result 19 1 August 2021
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 (Continued)
Important Notice and Disclaimer (Continued) 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 Reserv
Slide 5: Robust performance up cycle commences
Robust performance up cycle commences Effective COVID-19 response and Sustained safety performance $1.78 billion Revenue 8.4 TRIFR 17.5Mt Attributable Saleable $406 million Operating EBITDA Production & operating margin of 23% A$66/tonne Operating Cash Cost Operating cash flow of $179 million Paymen
Slide 6: Safety Performance
Safety Performance YAL SITES 12-mth Rolling TRIFR & LTIFR 12 Month Rolling TRIFR Weighted Industry Benchmark TRIFR • Reintroduction of COVID-19 12 Month Rolling LTIFR 12 response plans late in 2H 2021. 10 • No known COVID-19 cases at the mines^, but lockdowns and 8 proactive isolations taking place
Slide 7: Environment, Safety and Governance
Environment, Safety and Governance • During H1 2021 Yancoal: • Implemented a new process to maintain corporate oversight of potential mining activities that could impact Aboriginal cultural heritage sites with moderate to high archaeological significance, and • Continued to roll out its third party
Slide 8: Controllable and Uncontrollable factors
Controllable and Uncontrollable factors Operating factors 1H 2021 1H 2020 Change Observations Average realised sales price 94 94 0% Higher met coal proportion, but lower met coal price (A$/t) Attributable production 17.5 19.0 -8% Weather disruptions impacted production (million tonnes) Attributable
Slide 9: Coal market conditions
Coal market conditions • Average realised thermal coal price of A$89/t was up • Average realised metallurgical coal price of A$122/t was 1% from 1H 2020 as supply constraints saw down 15% from 1H 2020, but price index strength late in international indices recover from the lows in 2H 2020. the perio
Slide 10: Product mix
Product mix • Diverse customer base limits the impact from disruption from any one market. • Sales volumes weighted to the second half has been the pattern in recent years. • The metallurgical coal ratio lifted in 1H 2021. Attributable sales volume** (Million tonnes) 25 1H 2021 1H 2020 % Change Ther
Slide 11: Coal Production temporarily impacted
Coal Production temporarily impacted Attributable Saleable Production by Asset * (Million tonnes) • The decrease in attributable saleable coal Moolarben MTW HVO Yarrabee Stratford Duralie Ashton and Austar largely stems from wet weather disruptions in Non-attributable 1H 2021 in NSW; most notably at
Slide 12: Unit costs fluctuate on uncontrollable elements
Unit costs fluctuate on uncontrollable elements Cash operating costs (per production tonne) (A$/tonne) • Cash operating costs, A$66/tonne, increased Cash operating costs Royalty Implied operating cash margin due to several factors including diesel price, 140 demurrage costs, and reduced output.* 120
Slide 13: Financial Summary – Reduced sales volume affect
Financial Summary – Reduced sales volume affect Income Statement 1H 2021 1H 2020 Change Observations ($ millions) Revenue * 1,775 1,969 194 Lower coal sales volumes in 1H 2021 Operating EBITDA 406 488 82 Lower revenue directly impacts the EBITDA Depreciation and amortisation -397 -386 11 Steady peri
Slide 14: Price, Revenue and EBITDA
Price, Revenue and EBITDA Revenue and Average realised price EBITDA and Margin (A$ Million) | (A$/tonne) (A$ Million) | (%) Revenue Average selling price, A$/t Operating EBITDA EBITDA Margin 3,500 1,400 124 40% 3,000 1,200 34% 100 2,500 2,350 94 94 1,000 940 2,109 1,969 25% 2,000 800 71 1,775 714 23
Slide 15: Profit / (Loss) After Tax can include non-operating items
Profit / (Loss) After Tax can include non-operating items Profit / (Loss) after tax Operating cash flow (A$ Million) (A$ Million) Profit / (Loss) after tax Operating cash flow 1,000 1,000 564 605 500 783 800 765 155 - (129) 600 505 (500) 400 (1,000) 200 179 (1,500) 100 (1,645) (2,000) - 1H 2019 2H 2
Slide 16: Fiscal position affected but not compromised
Fiscal position affected but not compromised Cashflow and 1H 2021 2H 2020 Change Observations Balance Sheet Operating cash flow 179 100 79% Operating cash flow better than the 2H 2020 trough ($ million) Cash at end of period Final $100 million payment for Moolarben stake made in 539 637 -15% ($ mill
Slide 17: Debt and Distributions
Debt and Distributions Annual Net Debt* and Gearing Ratio** (A$ Million) | (%) Net debt, A$ mn Net gearing, (%) • From 2H 2020, the debt and gearing levels 4,000 41% 40% include Watagan components following the 3,500 reconsolidation. 32% 3,000 29% 29% • $924 million was returned to shareholders 2,50
Slide 18: Guidance for 2021
Guidance for 2021 Guidance Original 2021 Current 2021 2020 Outcome component Guidance Guidance Attributable saleable Around Around coal production 38.3 million tonnes 39 million tonnes 39 million tonnes Attributable cash operating cost $59/tonne $60 to 62/tonne $62 to 64/tonne (excl. government roya
Slide 19: The case for investment
The case for investment Three low-cost, large-scale assets underpin the business The capability to blend and wash coal products to maximise the market opportunity Diverse customer base continues to demonstrate appetite for Yancoal product Balanced approach to asset reinvestment, debt optimis