Australia’s largest pure-play coal miner has delivered record production in the first half of 2025, but softer prices dragged on Yancoal Australia Ltd (ASX:YAL)'s earnings and revenue.
Run-of-mine coal output rose 16% year-on-year to 32.2 million tonnes, while saleable production lifted 15% to 24.8 million tonnes. Attributable saleable production of 18.9 million tonnes was 11% higher than the same period in 2024, putting Yancoal ahead of the midpoint of its full-year guidance.
Revenue fell 15% to US$2.68 billion, reflecting a 15% drop in realised coal prices to US$149 a tonne and minor weather-related sales delays. Operating EBITDA declined 40% to US$595 million, with margins narrowing to 23%.
Cost control cushions impact
Despite weaker pricing, Yancoal trimmed operating cash costs by 8% to US$93/t (excluding royalties), thanks to higher volumes and efficiency gains. The company ended June with US$1.8 billion in cash, maintaining balance sheet strength.
The board declared an A$82 million fully franked interim dividend, equal to 6.2 cents a share, in line with its policy of consistent shareholder returns.
Outlook
Management flagged that production is on track to land toward the upper end of the 35–39 Mt guidance range, with cash costs likely to stay below the midpoint of forecasts. Acting CEO Ning Yue noted signs that high-cost producers are curbing output, which could support coal prices over the next year.
Yancoal shares slumped 11% to A$5.53 in afternoon trade as investors weighed record volumes against continued weakness in international coal markets.