Yancoal produced a steady September quarter, offsetting weather-related slowdowns with higher sales volumes, posting 12.3 million tonnes of saleable coal output and 15.8 million tonnes of run-of-mine coal production.
The company recorded a $1.8 billion cash balance as of September 30, with an unchanged operational guidance of 35–39 million tonnes of saleable production for 2025. This is said to be tracking above the mid-point to finish in the upper-half of the range.
Attributable sales also climbed 31 per cent to 10.7 million tonnes as delayed shipments from the June quarter were recovered.
Yancoal chief executive officer (CEO) Sharif Burra said that it was a “great honour” to be appointed as the company’s CEO in September, and that after nine months, the company is ahead of 2024’s production levels on a 100 per cent basis.
“If we sustain our attributable saleable coal production rate, we will be in the upper half of the guidance range this year, and a modest uplift can take us to the upper quartile,” he said.
“Typically, a volume increase would lower unit costs, however, the sector has encountered external and temporary cost pressure recently.
“Accordingly, we are looking at ways to maintain our discipline and deliver unit costs around the middle guidance range for the full year.”
Average realised coal prices were $140 per tonne, comprising a steady realised thermal coal price and a 1 per cent lower realised metallurgical coal price.
Burra said that despite international coal indices facing strong supply and “subdued demand”, average prices improved marginally from the second quarter (Q2) of 2025.
Its saleable production of 12.3 million tonnes was supported by what Yancoal said was a “site record” for monthly output at its Moolarben site, with a “favourable mix” of quality feed material and high yields in the wash plant.
This was bolstered by a 14 per cent increase at its Hunter Valley operations (HVO), with run-of-mine (ROM) coal volumes running ahead of plan through increased truck productivity and a redesigned ramp system.
In terms of safety, Yancoal’s total recordable injury frequency rate (TRIFR) was 5.71 for the quarter, a reduction from 6.32 at the end of Q2 this year, and below the industry average of 7.96.
On the company’s cash balance of $1.8 billion, Burra said that despite “our strong financial position” enabling the company to explore opportunities during the cyclical downturn, “we continually evaluate any opportunities in the context of current market conditions”.
“Coal supply reductions in response to lower coal prices reflect our view that coal indices are well below marginal cost on the global cost curve,” he said.
“Further supply-side restrictions from higher-cost producers would contribute to a possible recovery in coal price indices.”
Pre-feasibility studies are undergoing further assessment for the Mount Thorley Walkthrough, with a feasibility study to commence in the first quarter of 2026.
The New South Wales Department of Planning, Housing and Infrastructure is also continuing its assessment of Moolarben’s OC3 extension project, which, if approved, would add 30 million tonnes to the mine’s aggregate life of mine ROM production.
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