In This Article:
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Revenue: $6.9 billion.
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Operating EBITDA: $2.6 billion with a 37% margin.
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Profit After Tax: $1.2 billion.
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Cash Position: Close to $2.5 billion.
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Dividend Payment: $687 million, $0.52 per share, fully franked, 56% payout ratio.
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Attributable Production: 37 million tons, a 10% increase from 2023.
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Realized Coal Price: AUD176 per ton.
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Cash Operating Cost: $93 per ton for the full year.
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Implied Cash Operating Margin: $66 per ton.
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Thermal Coal Sales: 86% of total sales.
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Realized Thermal Coal Price: AUD160 per ton, down 24% from 2023.
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Realized Metallurgical Coal Price: AUD276 per ton, down 22% from 2023.
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Operating Cash Flow Increase: 69% increase, influenced by a $1.4 billion tax payment in 2023.
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Debt Status: Debt-free, except for some lease liabilities.
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2025 Production Guidance: 35 to 39 million tons of attributable saleable production.
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2025 Cash Cost Guidance: $86 to $97 per ton.
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2025 Capital Expenditure Guidance: $750 to $900 million.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Yancoal Australia Ltd (YACAF) achieved its best-ever half-year production performance in 2024.
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The company successfully reduced cash costs in an inflationary environment, with a full-year cash cost of $93 per ton.
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Yancoal generated $6.9 billion in revenue and $2.6 billion in operating EBITDA, with a 37% margin.
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The company returned $687 million to shareholders, representing a 56% payout ratio and a dividend of $0.52 per share, fully franked.
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Yancoal ended the year with a strong cash position of close to $2.5 billion and is debt-free, providing a solid foundation for potential growth opportunities.
Negative Points
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The realized coal price in 2024 was lower than the previous year, impacting revenue, which decreased by 12%.
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Safety performance, as measured by TRIFA statistics, improved but did not reach the desired level.
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Cost inflation factors, such as labor, explosives, and electricity, are now embedded in the cost base, posing ongoing challenges.
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The metallurgical coal market experienced a decline in demand in the second half of 2024 due to weakening steel market conditions.
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The company's production capacity is near its limit, with limited room for significant production increases without further investment.
Q & A Highlights
Q: Considering that the production and cost guidance for 2025 remains unchanged compared to 2024, could you provide additional insights on any potential cost improvement that may arise? A: Brendan Fitzpatrick, Investor Relations Manager, explained that maintaining flat costs in an inflationary environment is a positive outcome. David Bennett, EGM Operations, added that productivity improvements and cost control measures, such as optimizing contracts and reducing cash costs, are key strategies to manage costs effectively.