Yancoal's 4Q 2023 Performance Overview

Yancoal Australia Ltd (ASX: $YAL) reported an average realised coal price of A$196/t for the quarter ending 31 December 2023. The company achieved a $477 million increase in cash holding, resulting in a $1.40 billion cash balance at the end of 4Q 2023. Attributable saleable coal production reached 12.9Mt, meeting the mid-range of the 2023 guidance. Yancoal's Total Recordable Injury Frequency Rate of 5.3 remained significantly below the industry average, reflecting the company's commitment to workforce safety.

CEO's Perspective on 4Q 2023 Performance

Our average realised coal price was A$196/tonne for the quarter and A$232/tonne for the year. Coal indices remain at levels that allow our portfolio of high-quality mines to generate robust cashflow. Output from our mines improved for the fourth consecutive quarter as we delivered on recovery initiatives across our operations. Almost 13 million tonnes of saleable coal production was our best achievement over the past three years. The positive production trend in each quarter of this year is a direct result of a concerted effort of our people across all our mine sites. We aim to consolidate this performance and pursue efficiency gains in 2024. The $477 million added to the cash balance during the quarter is after all operating costs, as well as capital expenditure and monthly tax payments. This is a clear demonstration of the quality of Yancoal's assets and their capacity to generate positive cash flows.

Outlook and Market Analysis

Yancoal's 4Q 2023 performance reflects its ability to maintain a strong financial position and production output. The company's focus on safety, recovery initiatives, and workforce engagement has contributed to its positive results. With a debt-free status and a $1.40 billion cash balance, Yancoal is well-positioned to navigate coal market conditions. The company aims to maintain production levels around the 4Q rate throughout 2024 and further reduce cash operating costs. The thermal coal market appears balanced, with elevated exports from Australia and Indonesia offsetting reduced supply from Russia and South Africa. Yancoal's outlook remains optimistic as it continues to prioritize safety, efficiency, and sustainable cash generation.