Yancoal has welcomed a healthy boost to coal production in the first quarter of the 2024–25 financial year (Q1 FY25).
Total run of mine coal volumes increased 26 per cent compared to the previous quarter, and the company’s attributable saleable coal volume saw a 24 per cent bump.
Overall, Yancoal sold 10.4 million tonnes (Mt) of coal across its operations at an average realised price of $170 per tonne.
Yancoal chief executive officer David Moult credited the boost to a notable uplift in production at the company’s three large open cut mines.
“In thermal coal markets, short-term influences continue to affect indices and market sentiment,” Moult said.
“In recent weeks, Middle East tensions and a hotter than average summer in the northern hemisphere provided price support.”
Moult said the realised metallurgical coal price was better than the relevant indices due to continued higher priced carryover tonnes from prior periods, product blending and optimisation strategies.
“Yancoal’s large-scale, low-cost coal production profile is well suited to all coal market conditions,” he said.
“With no interest-bearing loans, a large net cash position and robust operating margins, we have the capacity to pursue suitable growth opportunities as they arise.”
Yancoal’s 2024 production guidance remains unchanged at 35–39Mt of saleable production.
The company expects to spend $89–97/t in operating costs with a $650–800 million attributable capital expenditure.
Recently marking its 20th anniversary as a company, Yancoal celebrated with its admission into the S&P/ASX 200 index.
“We see the company’s inclusion in the S&P ASX indices providing a further opportunity to expand our investor base and bolster the trading liquidity of our shares,” Moult said at the time.
“Our anticipated production rate over the remainder of 2024 puts us on track to be the second largest coal producer in Australia.”
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