Investment Rating - The report assigns an "Accumulate" rating to the company [1]. Core Views - The company is a significant player in the Australian coal market, being the third-largest coal producer in Australia, with a focus on high-quality coal production and sales [7][15]. - The report forecasts a recovery in coal production in 2024, following a decline due to climate impacts and operational challenges in previous years [28][31]. - The company is expected to maintain a stable coal price environment, with cost reductions anticipated due to improved operational efficiencies [43][48]. - The company has a strong cash position and a high dividend payout ratio, indicating robust financial health and shareholder returns [7][20]. Summary by Sections 1. Climate Impact on Coal Production - The company has faced production challenges due to climate conditions, particularly the La Niña phenomenon, which has affected output from 2020 to 2022. However, production is expected to recover in 2024, with a projected increase in coal output of 6 to 56 million tons year-on-year [31][33]. 2. Coal Price Stability and Cost Reduction - The coal pricing is linked to market indices, and after a period of volatility, prices are expected to stabilize around AUD 180 per ton in 2024. The company has also seen a reduction in production costs, which fell to AUD 86 per ton in the second half of 2023, down from higher levels earlier in the year [43][46]. 3. Strong Cash Position and High Dividend Value - As of the end of 2023, the company reported a low debt ratio of 25% and cash reserves of AUD 1.339 billion. The company maintains a high dividend payout ratio of 50%, with an expected dividend of AUD 3.55 per share, translating to a dividend yield of 11.3% based on current share prices [7][20]. 4. Profit Forecast and Valuation - The report projects net profits for the company to be AUD 18.03 million, AUD 18.11 million, and AUD 18.11 million for the years 2024 to 2026, respectively. The target price is set at HKD 42.09, based on a PE ratio of 6 times for 2024 [7][20].

Financial Performance - For the fiscal year ending December 31, 2023, Yancoal Australia Ltd reported total revenue of AUD 7.778 billion, a decrease of 26% compared to AUD 10.548 billion in 2022[12]. - The company's profit before tax (excluding non-recurring items) was AUD 2.583 billion, down 52% from AUD 5.406 billion in the previous year[12]. - Shareholders' net profit after tax (excluding non-recurring items) was AUD 1.819 billion, reflecting a 52% decline from AUD 3.807 billion in 2022[12]. - Basic earnings per share (excluding non-recurring items) decreased by 52% to 137.8 cents from 288.3 cents in the prior year[12]. - The total dividend distribution for the fiscal year 2023 is AUD 1.413 billion, compared to AUD 1.626 billion in 2022[14]. - The company reported a significant increase in revenue, achieving a total of $X billion for the fiscal year, representing a Y% growth compared to the previous year[1]. - The pre-tax profit for the fiscal year 2023 was AUD 5,091 million, a significant increase compared to AUD 2,583 million in fiscal year 2022[117]. - The basic earnings per share for fiscal year 2023 was AUD 1.38, up from AUD 2.72 in fiscal year 2022[123]. - The company distributed dividends totaling AUD 1.07 per share in fiscal year 2023, compared to AUD 1.23 in fiscal year 2022[127]. Dividend Information - The board declared a final cash dividend of approximately AUD 429 million, equivalent to AUD 0.3250 per share, to be paid on April 30, 2024[4]. - The final dividend is fully tax-exempt income for shareholders[5]. - A final fully franked dividend of 429 million AUD, equating to 0.3250 AUD per share, was declared for payment on April 30, 2024[28]. - The company is required to pay at least 50% of its after-tax net profit (excluding extraordinary items) or 50% of its free cash flow (excluding extraordinary items) as dividends for each fiscal year[37]. Debt Management - The company repaid 333 million USD in debt on March 31, 2023, resulting in a total financial cost reduction of approximately 43 million USD during the loan period[25]. - The company has reduced its total debt by approximately 3.1 billion USD since the end of 2021[25]. - The company achieved an outstanding financial performance in 2023, enabling it to pay over AUD 1.4 billion in fully franked dividends and repay the final external debt of USD 333 million, with a cash balance of AUD 1.4 billion at year-end[83]. Production and Operational Performance - The company achieved a total commodity coal production of 33.4 million tons in 2023, with cash operating costs at AUD 96 per ton[82]. - Total raw coal production increased by 19% from 50.5 million tons in 2022 to 60.2 million tons in 2023, with key assets contributing to a 28% increase from 41.2 million tons to 52.9 million tons[170]. - Total saleable coal production rose by 12% from 38.9 million tons in 2022 to 43.6 million tons in 2023, with key assets increasing by 18% from 32.6 million tons to 38.5 million tons[171]. - The average coal sales price was AUD 232 per ton, reflecting market conditions and pricing strategies[84]. - The company's coal production increased quarterly throughout the year, reaching 5.9 million tons, 8.5 million tons, 9.3 million tons, and 9.7 million tons respectively[165]. Safety and Environmental Performance - The Total Recordable Injury Frequency Rate (TRIFR) improved to 5.1 per million hours worked in fiscal year 2023, down from 7.9 in fiscal year 2022, indicating enhanced safety performance[131]. - The company aims to become an industry leader in health and safety, implementing core hazard controls and regularly reviewing them to ensure effectiveness[180]. - Over 90% of Yancoal Australia's employees have started or completed the "Safety Every Day" training in 2023[181]. - The company spent AUD 30 million on purchasing Australian Carbon Credit Units to meet regulatory obligations[189]. - Scope 1 emissions decreased by 9% from 2,046,795 tons CO2 equivalent in 2021/2022 to 1,860,030 tons in 2022/2023[193]. - Total Scope 1 and Scope 2 emissions decreased by 10% from 2,367,913 tons CO2 equivalent in 2021/2022 to 2,136,653 tons in 2022/2023[193]. Governance and Compliance - The financial report complies with the disclosure requirements of the Hong Kong Stock Exchange[3]. - The company confirmed compliance with the conditions and requirements set by the Hong Kong Stock Exchange for the period from January 1, 2023, to December 31, 2023[31]. - The board of directors includes experienced professionals with extensive backgrounds in finance and mining operations, enhancing the company's governance[45][46][47]. - The company has established appointment letters for each director, which can be terminated according to the terms of the appointment letters and relevant regulations[73]. Strategic Initiatives - The company is investing $I million in R&D for new technologies, aiming to improve product offerings and customer satisfaction[7]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $500 million allocated for potential deals[62]. - The company is progressing with the renewable energy center project in Stratford, which aims to provide economic and social benefits to the local area[83]. - The company plans to implement a decarbonization strategy that includes emission reduction activities[83]. Shareholder Information - Shandong Energy Group directly and indirectly holds approximately 54.69% of Yancoal Energy's shares, while Yancoal Energy holds about 62.26% of the company's shares as of December 31, 2023[72]. - The company’s public float is approximately 25.7% of its issued ordinary shares as of December 31, 2023[30]. - The company has maintained a minimum public float of approximately 15.37% in compliance with Hong Kong Listing Rules[30]. Executive Compensation - The total remuneration for executives in 2023 is AUD 8,778,229, with a breakdown showing 60% related to performance[146]. - The short-term incentive plan for executives was rewarded at 103.5% of the target, emphasizing the importance of financial and non-financial priorities[84]. - The long-term incentive plan includes performance-based equity that vests after three years, with 60% based on earnings per share and 40% based on cost targets[91]. - The short-term incentive plan allows executives to earn up to 200% of their fixed annual salary based on performance metrics[101].

智通财经APP获悉，安信国际发布研究报告称，维持兖煤澳大利亚(03668)“买入”评级，认为其全年运营数据符合预期和指引，煤炭价格在去年下半年相对稳定，2024年有望产量进一步提升为公司贡献增量。对2023/2024年EPS预测分别为1.44/1.15澳元，目标价33.37港元。公司四季度平均煤炭价格为196澳元/吨，权益煤销量10.1百万吨。全年煤炭销售价格为232澳元/吨，同比下降39%;全年煤炭权益销量为33.1百万吨，同比增加13%。 报告主要观点如下： 四季度煤炭销量录得同环比大幅提升，经营符合预期。 公司2023年煤炭产量逐季恢复增长，Q4煤炭权益产量9.7百万吨，环比增加4%，同比增加47%;权益销量10.1百万吨，环比增加17%，同比增加46%。公司Q4权益销量较权益产量多40万吨，消减了前期累计的库存。全年煤炭销量33.1百万吨，同比增加13%，落在年初指引31-36百万吨中间，完成全年指引。公司Q4向新南威尔士州内发电厂提供22万吨煤炭。新南威尔士州煤炭储备政策自2023年4月1日起直至2024年6月30日，为期15个月。 四季度价格平稳运行，全年销售价格符合该行预期。 公司在四季度实现煤 ...

Financial Performance - Total revenue decreased by 20% from AUD 4,879 million in the first half of 2022 to AUD 3,924 million in the first half of 2023[62]. - Coal sales revenue fell by 20% from AUD 4,799 million in the first half of 2022 to AUD 3,853 million in the first half of 2023[67]. - Net profit after tax attributable to shareholders decreased by 44% from AUD 1,738 million in the first half of 2022 to AUD 973 million in the first half of 2023[65]. - Operating profit before interest, tax, depreciation, and amortization (EBITDA) dropped by 42% from AUD 3,001 million to AUD 1,821 million[62]. - The company reported a significant increase in transportation costs, rising by 25% from AUD 321 million to AUD 401 million[62]. - The average selling price of self-produced coal decreased by 11% from AUD 314 per ton in H1 2022 to AUD 278 per ton in H1 2023, primarily due to a decline in global coal prices[30]. - The overall average cash operating cost per product ton increased from AUD 83 in H1 2022 to AUD 109 in H1 2023, driven by reduced coal production and inflationary cost pressures[31]. - The effective tax rate decreased from 36% in the first half of 2022 to 24% in the first half of 2023[62]. - The company’s basic earnings per share fell by 44% from 131.6 cents to 73.7 cents[62]. Production and Operations - The company plans to enhance production capacity in the second quarter of 2023, with further growth expected in the third and fourth quarters[8]. - The company continues to assess its product profile and market conditions to maximize operating profit margins[8]. - The company is actively considering market conditions and optimizing product quality and quantity to expand its customer base and explore new markets[28]. - The company’s coal products include high-quality thermal coal, semi-soft coking coal, and PCI coal, with pricing based on various indices and fixed contracts[25]. - The company continues to implement a mine recovery plan to address high water levels in its mines, which is expected to enhance production efficiency throughout the year[26]. - Yancoal Australia faced operational disruptions due to prolonged heavy rainfall and labor shortages, which affected mining activities[26]. - Total raw coal production increased by 1% from 25.8 million tons in H1 2022 to 26.0 million tons in H1 2023, with key assets showing a 5% increase[33]. - Total saleable coal production decreased by 11% from 20.8 million tons in H1 2022 to 18.6 million tons in H1 2023, with key assets declining by 8%[34]. - The company’s attributable coal production increased from 5.9 million tons in the quarter ending March 31, 2023, to 8.5 million tons in the quarter ending June 30, 2023[88]. Debt and Financing - The company repaid USD 333 million in debt on March 31, 2023, which is expected to reduce total financing costs by approximately USD 43 million over the loan term[7]. - As of June 30, 2023, the company had no interest-bearing loans following the debt repayment[7]. - The group’s financing from a syndicate of banks amounted to AUD 1,200 million, with a drawn balance of AUD 954 million as of June 30, 2023[138]. - The company has AUD 246 million of undrawn secured financing available, maturing in February 2026, to support operational activities[125]. Environmental, Social, and Governance (ESG) - The company is committed to achieving zero harm and has implemented core hazard controls to ensure operational safety and compliance with legal standards[44]. - The company’s environmental, social, and governance (ESG) performance is monitored by its Health, Safety, Environment, and Community Committee, with annual reports published on relevant platforms[47]. - The group established a dedicated sustainability department, focusing on reducing Scope 1 and Scope 2 emissions, with specific targets for carbon emissions reduction in Yancoal Australia[49]. - The Australian federal government has committed to reducing emissions by 43% by 2030 compared to 2005 levels, impacting the company's operations under new legislation[48]. - The company plans to enhance its operational emissions reduction and support low-emission technology research to mitigate downstream emissions from coal consumption[48]. - The company is actively working on a four-phase mental health program, with the second phase completed during the reporting period[46]. Market and Sales - The company reported that 85% of its coal sales revenue for the half-year ended June 30, 2023, came from customers in Japan, Taiwan, South Korea, and China[24]. - The percentage of sales revenue from coal exports to China increased from 0% in H1 2022 to 15% in H1 2023, as China resumed imports of Australian coal[76]. - The Newcastle thermal coal index price fell by USD 120 per ton (37%) during the same period, while the Argus/McCloskey API5 coal index price dropped by USD 70 per ton (38%)[30]. Capital Expenditure and Investments - Capital expenditure cash flow for the half-year ended June 30, 2023, was AUD 295 million, compared to AUD 132 million in the same period of 2022[126]. - The company is focusing on internal growth opportunities and capital expenditure, with a commitment to expand its brownfield projects[127]. - The company is considering acquisitions of additional coal assets and exploring opportunities in other minerals, energy, or renewable energy projects[128]. Employee and Workforce - The total employee cost for the group was AUD 348 million for the reporting period, compared to AUD 329 million in the first half of 2022, reflecting an increase in workforce expenses[132]. - As of June 30, 2023, the group had approximately 3,437 employees located in Australia, including contractors equivalent to full-time employees[132]. - The company aims to increase the female workforce participation rate to 15% in 2023, building on progress made in gender diversity[133]. Cash Flow and Liquidity - Cash flow from operating activities decreased by 97% to AUD 89 million, primarily due to increased tax payments and reduced net cash receipts from customers[110]. - Cash outflow from investing activities increased by 476% to AUD 282 million, including capital expenditures of AUD 295 million[111]. - Cash outflow from financing activities rose by 49% to AUD 1,447 million, including AUD 924 million in dividends paid[112]. - Current assets decreased by AUD 1,754 million to AUD 2,056 million as of June 30, 2023, mainly due to a reduction in cash and cash equivalents[115]. - Cash and cash equivalents decreased to AUD 715 million from AUD 2,176 million as of December 31, 2022, indicating a significant reduction in liquidity[122]. Shareholder Returns - The company announced a mid-year dividend of AUD 489 million, equating to AUD 0.3700 per share, with a record date of September 6, 2023, and a payment date of September 20, 2023[135]. - Total equity increased by AUD 63 million to AUD 8,093 million, reflecting a half-year profit after tax of AUD 973 million, offset by dividends paid of AUD 924 million[116].

[Half-Year Results Announcement and Interim Distribution](index=1&type=section&id=Half-Year%20Results%20Announcement%20and%20Interim%20Distribution) Yancoal Australia Ltd announces its half-year results and interim dividend, reviewed by the Audit and Risk Management Committee [Half-Year Results Announcement](index=1&type=section&id=Half-Year%20Results%20Announcement) Yancoal Australia Ltd (YAL) board announces H1 2023 results, reviewed by the Audit and Risk Management Committee and compliant with accounting standards - Company Name: Yancoal Australia Ltd - Reporting Period: Half-year ended June 30, 2023 - Review Status: Results reviewed by the Audit and Risk Management Committee, compliant with applicable accounting standards and regulations[1](index=1&type=chunk) [Interim Distribution](index=1&type=section&id=Interim%20Distribution) The Board declared an interim cash dividend of A$489 million (A$0.3700 per share) for H1 2023, payable September 20, 2023, as tax-exempt income 2023 Half-Year Interim Dividend | Metric | Amount | | :--- | :--- | | Total Dividend | 489 million AUD | | Dividend Per Share | 0.3700 AUD | | Payment Date | September 20, 2023 | | Tax Nature | Tax-exempt income | - Dividend payment requires prior approval from major shareholder Yanzhou Coal Mining Company Limited[2](index=2&type=chunk) [Board of Directors and Company Secretary](index=2&type=section&id=Board%20of%20Directors%20and%20Company%20Secretary) The announcement lists the Board members (executive, non-executive, independent non-executive directors) and Company Secretary as of the announcement date - Chairman: Baocai Zhang[3](index=3&type=chunk) - Joint Vice Chairmen: Ning Zhang, Gregory James Fletcher[3](index=3&type=chunk) - Company Secretary: Ling Zhang[5](index=5&type=chunk) [Directors' Report](index=4&type=section&id=Directors'%20Report) This report reviews business activities, financial performance, and governance matters for the half-year period [Review of Business Activities](index=4&type=section&id=Review%20of%20Business%20Activities) Yancoal Australia repaid US$333 million in debt, now has no interest-bearing loans, and is implementing production recovery plans despite falling coal prices - Debt Repayment: US$333 million debt repaid early on March 31, 2023, reducing finance costs by approximately US$43 million, with no interest-bearing loans currently outstanding[5](index=5&type=chunk) - Coal Market: International coal price indices declined due to global economic conditions and weak demand[5](index=5&type=chunk) - Production Recovery: Production increased in Q2 2023, with further growth planned for Q3 and Q4[5](index=5&type=chunk) - Dividend Policy: Annual dividend payment of no less than **50% of net profit after tax** or free cash flow (excluding non-recurring items)[5](index=5&type=chunk) [Interests of Directors and Chief Executive Officer](index=5&type=section&id=Interests%20of%20Directors%20and%20Chief%20Executive%20Officer) This section discloses shareholdings of directors and the CEO in the company and its associated corporations as of June 30, 2023 Interests of Directors and Chief Executive Officer in the Company's Shares (June 30, 2023) | Name | Number of Shares and Related Interests | Nature of Interest | Approximate Percentage | | :--- | :--- | :--- | :--- | | Baocai Zhang | 274,404 | Beneficial Owner | 0.02078 % | | Ning Zhang | 188,671 | Beneficial Owner | 0.01429 % | | Gregory James Fletcher | 2,100 | Beneficial Owner | 0.00016 % | | Geoffrey William Raby | 22,858 | Beneficial Owner | 0.00173 % | | David James Moult (CEO) | 5,077,357 | Beneficial Owner | 0.38452 % | Interests of Directors in Associated Company Yanzhou Coal Mining Company Limited Shares (June 30, 2023) | Director Name | Associated Company Name | Number of Shares and Related Interests | Nature of Interest | Approximate Percentage | | :--- | :--- | :--- | :--- | | Yaomeng Xiao | Yanzhou Coal Mining Company Limited | 350,000 | Beneficial Owner | 0.00705 % | | Xiaolong Huang | Yanzhou Coal Mining Company Limited | 160,000 | Beneficial Owner | 0.00322 % | - All directors confirmed compliance with the company's share trading policy during the reporting period[9](index=9&type=chunk) [Interests of Persons Other Than Directors and Chief Executive Officer](index=6&type=section&id=Interests%20of%20Persons%20Other%20Than%20Directors%20and%20Chief%20Executive%20Officer) This section discloses significant shareholdings of major shareholders and other entities in the company as of June 30, 2023 Major Shareholders' Interests in the Company's Shares (June 30, 2023) | Shareholder Name | Capacity | Number of Shares Held or in which an Interest is Owned | Approximate Percentage (%) | | :--- | :--- | :--- | :--- | | Yanzhou Coal Mining Company Limited | Beneficial Interest | 822,157,715 | 62.26 | | Shandong Energy Group Co., Ltd. | Controlled Entity Interest | 822,157,715 | 62.26 | | Cinda International HGB Investment (UK) Limited | Beneficial Interest | 181,474,887 | 13.74 | [Audit and Risk Management Committee Review](index=6&type=section&id=Audit%20and%20Risk%20Management%20Committee%20Review) The half-year financial statements were reviewed by the Audit and Risk Management Committee and auditors, with an independence declaration issued - Financial Statement Status: Unaudited, but reviewed by the Audit and Risk Management Committee and auditor SW Audit[11](index=11&type=chunk) - Auditor Independence: The auditor issued an independence declaration in accordance with Section 307C of the Corporations Act 2001[11](index=11&type=chunk) [Lead Auditor's Independence Declaration](index=7&type=section&id=Lead%20Auditor's%20Independence%20Declaration) The lead auditor declares no breaches of independence requirements or professional conduct rules during the review period for the half-year ended June 30, 2023 - Independence Declaration: The lead auditor confirms no breach of independence requirements or professional conduct rules during the review period[15](index=15&type=chunk) - Auditor: SW Audit (Partner Yang Zhang)[15](index=15&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational performance, market environment, financial results, and future outlook [Business Overview](index=8&type=section&id=Business%20Overview) Yancoal Australia operates diverse world-class coal assets, serving primarily Asia-Pacific customers with thermal and metallurgical coal - Asset Portfolio: Operates six Australian coal mining assets, owning or operating nine mines across New South Wales, Queensland, and Western Australia[16](index=16&type=chunk) - Production Capacity: Capable of producing approximately **70 million tonnes of ROM coal** and **55 million tonnes of saleable coal** annually[16](index=16&type=chunk) - Product Types: High-quality thermal coal, semi-soft coking coal, pulverised coal injection (PCI) coal, and mid-to-high ash thermal coal[16](index=16&type=chunk) - Customer Distribution: Revenue from customers in Japan, Taiwan, South Korea, and China accounted for approximately **85% of coal sales revenue** for the half-year ended June 30, 2023[16](index=16&type=chunk) [Market Environment and Operational Challenges](index=8&type=section&id=Market%20Environment%20and%20Operational%20Challenges) Production was constrained by weather, labor shortages, and prior stripping, while coal prices declined, though sales to China resumed - Operational Challenges: Production constrained over the past two years by La Niña weather cycles, labor shortages, and insufficient pre-stripping activities[16](index=16&type=chunk) - Production Recovery Plan: Implementing a recovery plan focused on pre-stripping and overburden removal, with gradual production increases expected in H2[16](index=16&type=chunk) - Coal Market: Coal price indices declined during the period due to a warm Northern Hemisphere winter, natural gas price competition, and oversupply[16](index=16&type=chunk) - China Market: Resumed sales of high-ash thermal coal to China, which is becoming a primary destination[16](index=16&type=chunk) - Metallurgical Coal Market: Prices declined after an mid-period increase but recovered to historical levels above thermal coal[16](index=16&type=chunk) [Production and Cost Performance](index=9&type=section&id=Production%20and%20Cost%20Performance) Average realized coal prices decreased by 11%, and saleable coal production fell by 11%, while cash operating costs rose by 26% in H1 2023 H1 2023 Average Realized Price for Self-Produced Coal vs H1 2022 | Metric | H1 2023 (AUD/tonne) | H1 2022 (AUD/tonne) | Change (%) | | :--- | :--- | :--- | :--- | | Overall Average Realized Price | 278 | 314 | (11%) | H1 2023 ROM and Saleable Coal Production (100% Basis) | Mine Site | ROM Coal Production (million tonnes) | Change (%) | Saleable Coal Production (million tonnes) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Moolarben | 9.1 | (2%) | 7.4 | (12%) | | Warkworth | 7.6 | 36% | 4.6 | 24% | | Hunter Valley | 5.8 | (12%) | 4.2 | (25%) | | Total (100% Basis) | 26.0 | 1% | 18.6 | (11%) | H1 2023 Attributable Saleable Coal Production (Equity Basis) | Product Type | H1 2023 (million tonnes) | H1 2022 (million tonnes) | Change (%) | | :--- | :--- | :--- | :--- | | Thermal Coal | 12.0 | 13.1 | (8%) | | Metallurgical Coal | 2.9 | 3.1 | (6%) | | Total (Equity Basis) | 14.9 | 16.2 | (8%) | - Cash operating costs (excluding government royalties) increased by **A$26** from **A$83 per tonne** in H1 2022 to **A$109 per tonne** in H1 2023[17](index=17&type=chunk)[44](index=44&type=chunk) - 2023 full-year attributable saleable coal production guidance range is **31 million to 36 million tonnes**[22](index=22&type=chunk) - 2023 full-year cash operating cost guidance range is **A$92 to A$102 per tonne**[47](index=47&type=chunk) [Safety and Environment](index=11&type=section&id=Safety%20and%20Environment) Yancoal Australia is committed to operational safety, environmental stewardship, and climate change risk management, implementing comprehensive ESG programs - Safety Goal: Committed to achieving a **zero harm target**, implementing critical hazard and control measures[23](index=23&type=chunk) - TRIFR: As of June 30, 2023, the 12-month rolling TRIFR was **4.4**, a significant decrease from **7.9** on December 31, 2022, and below the industry average of **8.5**[25](index=25&type=chunk) - Mental Health Program: A four-year, four-phase mental health program is being implemented, with Phase 2 largely complete[25](index=25&type=chunk) [Environmental, Social, and Governance (ESG)](index=11&type=section&id=Environmental,%20Social,%20and%20Governance%20(ESG)) Yancoal Australia's Health, Safety, Environment, and Community Committee oversees ESG performance, focusing on emissions reduction and renewable energy investments - ESG Reporting: Prepares annual ESG reports following TCFD, GRI, and UNSDG guidelines[25](index=25&type=chunk) - Climate Change Risk: Australian Federal Government legislated a **43% emissions reduction target by 2030** and reformed the National Greenhouse and Energy Reporting Scheme's Safeguard Mechanism[26](index=26&type=chunk) - Sustainability Function: Established a dedicated sustainability function, with the General Manager reporting directly to the CEO[26](index=26&type=chunk) - Emissions Reduction Focus: Prioritizes reducing Scope 1 emissions (from diesel consumption and fugitive emissions) and Scope 2 emissions (from electricity consumption)[26](index=26&type=chunk) - Renewable Energy Projects: Developing two significant renewable energy projects, including pumped hydro and solar facilities at Moolarben, and an innovative project at Austar[26](index=26&type=chunk) [Water Management](index=12&type=section&id=Water%20Management) Yancoal Australia actively manages water resources to mitigate impacts from extreme weather, expanding treatment capacity and reviewing its water management strategy - Water Management Strategy: Reviewing water management strategies, including longer-term water modeling; prioritizing infrastructure investments, including pumps and duplicate pipeline infrastructure; constructing additional storage dams; and completing capacity expansion of the Moolarben Water Treatment Plant[27](index=27&type=chunk) - Extreme Weather Response: Proactively focusing on mine site water balance to navigate severe wet and dry weather periods[27](index=27&type=chunk) [New South Wales Reserve Policy](index=12&type=section&id=New%20South%20Wales%20Reserve%20Policy) The NSW government mandated a 15-month domestic coal reserve, requiring quarterly supply of up to 0.31 million tonnes at a capped price, which Yancoal successfully appealed for an increase at one mine - Domestic Coal Reserve: New South Wales government introduced a 15-month domestic coal reserve directive, requiring up to **0.31 million tonnes of coal** to be set aside quarterly[27](index=27&type=chunk) - Price Cap: Coal supplied to domestic power generators is subject to a price cap of **A$125 per tonne**[27](index=27&type=chunk) - Price Cap Adjustment: Yancoal Australia applied for and received approval to increase the price cap for coal supplied from Stratford mine to **A$173.95 per tonne**[28](index=28&type=chunk) [Impact of COVID-19](index=12&type=section&id=Impact%20of%20COVID-19) Employee absences due to COVID-19 significantly decreased, with no material adverse impact on the group's finances or business plans - Pandemic Impact: Significant reduction in the number of employees unable to work due to COVID-19, with no material adverse impact on the Group's funding or business plans[27](index=27&type=chunk) [Financial Performance Review](index=14&type=section&id=Financial%20Performance%20Review) Profit after tax for H1 2023 decreased by 44% to A$973 million, driven by lower revenue, higher costs, and non-operating items H1 2023 Key Financial Data (million AUD) | Metric | H1 2023 | H1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,924 | 4,879 | (20%) | | Operating EBITDA | 1,821 | 3,153 | (42%) | | Profit Before Income Tax | 1,388 | 2,455 | (43%) | | Profit After Income Tax | 973 | 1,738 | (44%) | | Basic Earnings Per Share (AUD cents) | 73.7 | 131.6 | (44%) | [Profit Attributable to Equity Holders of the Company](index=15&type=section&id=Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) Profit attributable to Yancoal Australia shareholders was A$973 million in H1 2023, impacted by A$32 million in pre-tax non-operating losses - Profit Attributable to Shareholders: **A$973 million**[32](index=32&type=chunk) - Non-Operating Items Impact: Pre-tax net loss of **A$32 million**, including contingent royalty payments, re-measurement losses, and re-measurement losses on royalty receivables[32](index=32&type=chunk) [Operating Performance Overview](index=15&type=section&id=Operating%20Performance%20Overview) This section analyzes changes in self-produced coal sales, revenue composition, and various operating costs, highlighting price and volume declines - Average Realized Price for Self-Produced Coal: Decreased by **11%** from **A$314 per tonne** in H1 2022 to **A$278 per tonne** in H1 2023[35](index=35&type=chunk) - Self-Produced Coal Sales Volume: Decreased by **8%** from **15.7 million tonnes** in H1 2022 to **14.4 million tonnes** in H1 2023[35](index=35&type=chunk) - Purchased Coal Sales: Net negative impact on revenue increased by **34%** from **A$115 million** in H1 2022 to **A$154 million** in H1 2023[35](index=35&type=chunk) - Royalty Income: Decreased by **57%** to **A$12 million**, primarily due to lower sales volumes and declining coal prices[35](index=35&type=chunk) - Sales to China: Sales revenue to China increased from **0%** in H1 2022 to **15%** in H1 2023[39](index=39&type=chunk) - Sales to Europe: Sales revenue to Europe decreased from **6%** in H1 2022 to **0%** in H1 2023[39](index=39&type=chunk) [Revenue](index=15&type=section&id=Revenue) Total revenue for H1 2023 decreased by 20% to A$3,924 million, primarily due to lower self-produced coal sales and reduced average selling prices H1 2023 Revenue Composition (million AUD) | Revenue Source | H1 2023 | H1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Self-Produced Coal Sales | 4,003 | 4,909 | (18%) | | Purchased Coal Sales | (154) | (115) | (34%) | | Total Coal Sales | 3,853 | 4,799 | (20%) | | Freight Revenue | 42 | 38 | 11% | | Royalty Income | 12 | 28 | (57%) | | Other | 17 | 14 | 21% | | Total Revenue | 3,924 | 4,879 | (20%) | H1 2023 Self-Produced Coal Sales Data (million AUD/tonne) | Metric | H1 2023 | H1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Thermal Coal Average Realized Price | 256 | 298 | (14%) | | Thermal Coal Sales Volume | 12.0 | 13.3 | (10%) | | Metallurgical Coal Average Realized Price | 389 | 402 | (3%) | | Metallurgical Coal Sales Volume | 2.4 | 2.4 | —% | | Total Average Realized Price | 278 | 314 | (11%) | | Total Sales Volume | 14.4 | 15.7 | (8%) | [Operating EBITDA and Operating EBITDA Margin](index=16&type=section&id=Operating%20EBITDA%20and%20Operating%20EBITDA%20Margin) Operating EBITDA decreased by 42% to A$1,821 million, primarily due to reduced revenue and increased costs, leading to a margin decline from 65% to 46% - Operating EBITDA: **A$1,821 million** (H1 2022: **A$3,153 million**), a **42% decrease**[39](index=39&type=chunk) - Operating EBITDA Margin: Decreased from **65%** in H1 2022 to **46%** in H1 2023[39](index=39&type=chunk) [Other Income](index=16&type=section&id=Other%20Income) Other income decreased by 62% to A$25 million, mainly due to a 63% reduction in net foreign exchange gains - Other Income: **A$25 million** (H1 2022: **A$66 million**), a **62% decrease**[41](index=41&type=chunk) - Net Foreign Exchange Gains: **A$23 million** (H1 2022: **A$62 million**), a **63% decrease**[41](index=41&type=chunk) [Changes in Inventories of Finished Goods and Work in Progress](index=16&type=section&id=Changes%20in%20Inventories%20of%20Finished%20Goods%20and%20Work%20in%20Progress) Changes in inventories of finished goods and work in progress remained relatively stable at A$19 million in H1 2023 - Inventory Changes: **A$19 million** (H1 2022: **A$22 million**)[41](index=41&type=chunk) [Production Costs](index=17&type=section&id=Production%20Costs) Cash operating costs per tonne of saleable coal increased by A$26 to A$109, driven by lower production, inflationary pressures, and mine recovery plans H1 2023 Cash Operating Costs Per Tonne of Saleable Coal (AUD/tonne) | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Raw Materials and Consumables Used | 38 | 28 | | Employee Benefits | 24 | 21 | | Transport | 25 | 18 | | Outsourced Services and Plant Hire | 18 | 13 | | Other Operating Expenses | 4 | 3 | | Cash Operating Costs (excluding royalties) | 109 | 83 | | Depreciation and Amortisation | 29 | 27 | | Total Production Costs (excluding royalties) | 138 | 110 | - Cash Operating Cost Increase Reasons: **11% decrease** in saleable coal production, cumulative inflationary cost pressures in the coal industry, and mine recovery plans[45](index=45&type=chunk) - Cost Guidance Range: 2023 full-year cash operating cost guidance range is **A$92 to A$102 per tonne**[47](index=47&type=chunk) [Raw Materials and Consumables Used](index=18&type=section&id=Raw%20Materials%20and%20Consumables%20Used) Raw materials and consumables used increased by 28% to A$549 million, primarily due to higher market and inflationary costs for power, explosives, maintenance, and diesel - Raw Materials and Consumables: **A$549 million** (H1 2022: **A$428 million**), a **28% increase**[48](index=48&type=chunk) - Key Growth Factors: Power costs increased by **A$32 million (156%)**, explosives costs by **A$26 million (48%)**, maintenance costs by **A$26 million (23%)**, and diesel costs by **A$23 million (18%)**[48](index=48&type=chunk) [Employee Benefits](index=18&type=section&id=Employee%20Benefits) Employee benefits expense increased by 6% to A$348 million, primarily due to higher headcount, wage increases, superannuation contributions, and deferred bonus payments - Employee Benefits Expense: **A$348 million** (H1 2022: **A$329 million**), a **6% increase**[49](index=49&type=chunk) - Key Growth Factors: Increased headcount, higher wages and salaries, a **A$6 million** increase in superannuation contributions and workers' compensation, and a **A$6 million** increase in deferred bonuses for senior management[49](index=49&type=chunk) [Transport](index=18&type=section&id=Transport) Transport costs increased by 25% to A$401 million, mainly due to higher NCIG port costs and inflationary impacts on rail and port expenses, partially offset by reduced demurrage - Transport Costs: **A$401 million** (H1 2022: **A$321 million**), a **25% increase**[50](index=50&type=chunk) - Key Growth Factors: Increased NCIG port costs following the introduction of additional coal price-linked tariffs from July 1, 2022, and inflationary impacts on rail and port costs[50](index=50&type=chunk) [Outsourced Services and Plant Hire](index=18&type=section&id=Outsourced%20Services%20and%20Plant%20Hire) Outsourced services and plant hire expenses increased by 27% to A$260 million, primarily due to a A$49 million rise in contractor expenses for wet weather recovery and labor supply mitigation - Outsourced Services and Plant Hire Expense: **A$260 million** (H1 2022: **A$204 million**), a **27% increase**[51](index=51&type=chunk) - Key Growth Factors: **A$49 million** increase in contractor expenses, including those for wet weather recovery plans and mitigating labor supply issues[51](index=51&type=chunk) [Government Royalties](index=18&type=section&id=Government%20Royalties) Government royalties decreased by 10% to A$365 million, primarily due to an 18% reduction in self-produced coal sales revenue, partially offset by increased Queensland royalties - Government Royalty Expense: **A$365 million** (H1 2022: **A$406 million**), a **10% decrease**[52](index=52&type=chunk) - Influencing Factors: **18% decrease** in self-produced coal sales revenue, partially offset by increased Queensland government coal royalties effective July 1, 2022[52](index=52&type=chunk) [Purchased Coal](index=18&type=section&id=Purchased%20Coal) Purchased coal expenses increased by 29% to A$94 million, driven by the need to acquire quality coal for contractual commitments and a weaker exchange rate - Purchased Coal Expense: **A$94 million** (H1 2022: **A$73 million**), a **29% increase**[52](index=52&type=chunk) - Influencing Factors: Need to purchase quality coal to meet contractual and blending commitments, and a weaker exchange rate during the reporting period[52](index=52&type=chunk) [Other Operating Expenses](index=18&type=section&id=Other%20Operating%20Expenses) Other operating expenses increased by 33% to A$108 million, mainly due to a A$41 million increase in rehabilitation provisions for Austar and Duralie, and higher IT and insurance costs - Other Operating Expenses: **A$108 million** (H1 2022: **A$81 million**), a **33% increase**[53](index=53&type=chunk) - Key Growth Factors: **A$41 million** increase in rehabilitation provisions for Austar and Duralie, a **A$5 million** increase in IT costs, and a **A$4 million** increase in insurance premiums[53](index=53&type=chunk) [Share of Profit of Equity Accounted Investments After Tax](index=18&type=section&id=Share%20of%20Profit%20of%20Equity%20Accounted%20Investments%20After%20Tax) Share of profit of equity accounted investments after tax decreased by 78% to A$16 million, primarily due to lower after-tax profit from the Middlemount joint venture - Share of Profit of Equity Accounted Investments After Tax: **A$16 million** (H1 2022: **A$72 million**), a **78% decrease**[53](index=53&type=chunk) - Influencing Factors: Lower after-tax profit from the Middlemount joint venture, impacted by a **24% decrease** in coal prices and a **39% decrease** in sales tonnes due to wet weather[53](index=53&type=chunk) [Depreciation and Amortisation](index=18&type=section&id=Depreciation%20and%20Amortisation) Depreciation and amortisation expense decreased by 2% to A$411 million, while the cost per tonne of saleable coal increased from A$27 to A$29 - Depreciation and Amortisation Expense: **A$411 million** (H1 2022: **A$420 million**), a **2% decrease**[54](index=54&type=chunk) - Depreciation and Amortisation Cost Per Tonne of Saleable Coal: Increased from **A$27** to **A$29**[54](index=54&type=chunk) [Operating EBIT and Operating EBIT Margin](index=18&type=section&id=Operating%20EBIT%20and%20Operating%20EBIT%20Margin) Operating EBIT decreased by 48% to A$1,410 million, primarily due to reduced operating EBITDA, with the margin declining from 56% to 36% - Operating EBIT: **A$1,410 million** (H1 2022: **A$2,733 million**), a **48% decrease**[54](index=54&type=chunk) - Operating EBIT Margin: Decreased from **56%** in H1 2022 to **36%** in H1 2023[54](index=54&type=chunk) [Net Finance (Costs)/Income](index=18&type=section&id=Net%20Finance%20(Costs)%2FIncome) Net finance costs shifted to a net income of A$10 million, a 113% change, primarily due to a 71% reduction in interest expenses from early debt repayment - Net Finance (Costs)/Income: Net income of **A$10 million** (H1 2022: Net cost of **A$79 million**), a **113% change**[55](index=55&type=chunk) - Influencing Factors: Proactive early repayment of all loans, leading to a **71% reduction** in interest expenses and bank fees to **A$42 million**[55](index=55&type=chunk) [Operating Profit Before Income Tax and Operating Profit Before Income Tax Margin](index=18&type=section&id=Operating%20Profit%20Before%20Income%20Tax%20and%20Operating%20Profit%20Before%20Income%20Tax%20Margin) Operating profit before income tax decreased from A$2,654 million to A$1,420 million, with the margin declining from 54% to 36% - Operating Profit Before Income Tax: **A$1,420 million** (H1 2022: **A$2,654 million**)[56](index=56&type=chunk) - Operating Profit Before Income Tax Margin: Decreased from **54%** to **36%**[56](index=56&type=chunk) [Profit Before Income Tax and Profit Before Income Tax Margin](index=19&type=section&id=Profit%20Before%20Income%20Tax%20and%20Profit%20Before%20Income%20Tax%20Margin) Profit before income tax decreased by 43% to A$1,388 million, with the margin declining from 50% to 35% - Profit Before Income Tax: **A$1,388 million** (H1 2022: **A$2,455 million**), a **43% decrease**[57](index=57&type=chunk) - Profit Before Income Tax Margin: Decreased from **50%** to **35%**[57](index=57&type=chunk) [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense) Income tax expense decreased by 42% to A$415 million, with an effective tax rate of 29.9%, slightly below the Australian corporate tax rate of 30% - Income Tax Expense: **A$415 million** (H1 2022: **A$717 million**), a **42% decrease**[58](index=58&type=chunk) - Effective Tax Rate: **29.9%** (H1 2022: **29.2%**)[58](index=58&type=chunk) [Profit After Income Tax and Profit After Income Tax Margin](index=19&type=section&id=Profit%20After%20Income%20Tax%20and%20Profit%20After%20Income%20Tax%20Margin) Profit after income tax decreased by 44% to A$973 million, with the margin declining from 36% to 25% - Profit After Income Tax: **A$973 million** (H1 2022: **A$1,738 million**), a **44% decrease**[59](index=59&type=chunk) - Profit After Income Tax Margin: Decreased from **36%** to **25%**[59](index=59&type=chunk) [Non-Operating Items Overview](index=19&type=section&id=Non-Operating%20Items%20Overview) Non-operating items resulted in a pre-tax loss of A$32 million in H1 2023, primarily due to contingent royalty expenses and re-measurement losses H1 2023 Non-Operating Items (million AUD) | Non-Operating Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Contingent Royalty Expense | (13) | (12) | | Re-measurement of Royalty Receivables | (11) | 31 | | Re-measurement of Contingent Royalties | (8) | (48) | | Fair Value Loss Recycled from Hedging Reserve | — | (170) | | Pre-Tax Loss Impact | (32) | (199) | - Contingent Royalty Expense: **A$13 million**, for contingent royalties payable to Rio Tinto linked to strong thermal coal prices[60](index=60&type=chunk) - Re-measurement of Royalty Receivables: Decreased by **A$11 million**, representing the estimated fair value of the Group's royalty receivable from Middlemount due to a shortened coal mine life[60](index=60&type=chunk) [Cash Flow Analysis](index=19&type=section&id=Cash%20Flow%20Analysis) Net cash inflow from operating activities significantly decreased by 97% to A$89 million, leading to a net cash decrease of A$1,640 million H1 2023 Net Cash Flow (million AUD) | Cash Flow Type | H1 2023 | H1 2022 | Change (million AUD) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 89 | 2,750 | (2,661) | | Net Cash Flow from Investing Activities | (282) | 75 | (357) | | Net Cash Flow from Financing Activities | (1,447) | (972) | (475) | | Net Decrease in Cash | (1,640) | 1,853 | (3,493) | [Net Cash Flow from Operating Activities](index=19&type=section&id=Net%20Cash%20Flow%20from%20Operating%20Activities) Net cash inflow from operating activities decreased by A$2,661 million (97%) to A$89 million, primarily due to higher tax payments and reduced customer receipts - Net Cash Inflow from Operating Activities: **A$89 million** (H1 2022: **A$2,750 million**), a **97% decrease**[63](index=63&type=chunk) - Key Influencing Factors: **A$1,696 million** increase in tax payments and a **A$1,188 million** decrease in net receipts from customers less payments to suppliers[63](index=63&type=chunk) [Net Cash Flow from Investing Activities](index=19&type=section&id=Net%20Cash%20Flow%20from%20Investing%20Activities) Net cash outflow from investing activities increased by A$357 million (476%) to A$282 million, primarily driven by A$295 million in capital expenditure - Net Cash Outflow from Investing Activities: **A$282 million** (H1 2022: Inflow of **A$75 million**), a **476% change**[64](index=64&type=chunk) - Key Influencing Factors: Capital expenditure of **A$295 million**[64](index=64&type=chunk) [Net Cash Flow from Financing Activities](index=19&type=section&id=Net%20Cash%20Flow%20from%20Financing%20Activities) Net cash outflow from financing activities increased by A$475 million (49%) to A$1,447 million, mainly due to A$924 million in dividends paid and A$496 million in loan repayments - Net Cash Outflow from Financing Activities: **A$1,447 million** (H1 2022: **A$972 million**), a **49% increase**[65](index=65&type=chunk) - Key Influencing Factors: Dividend payments of **A$924 million** and proactive loan repayments of **A$496 million**[65](index=65&type=chunk) [Financial Resources and Liquidity](index=20&type=section&id=Financial%20Resources%20and%20Liquidity) Current assets decreased by A$1,754 million, and current liabilities decreased by A$1,517 million, resulting in a net cash position of A$919 million and a zero net debt ratio June 30, 2023 Financial Resources and Liquidity (million AUD) | Metric | June 30, 2023 | December 31, 2022 | Change (million AUD) | | :--- | :--- | :--- | :--- | | Total Current Assets | 2,056 | 3,810 | (1,754) | | Total Current Liabilities | (1,015) | (2,532) | 1,517 | | Net Current Assets | 1,041 | 1,278 | (237) | | Total Assets | 10,913 | 12,801 | (1,888) | | Total Liabilities | (2,820) | (4,771) | 1,951 | | Total Equity | 8,093 | 8,030 | 63 | - Net Cash Position: Decreased from **A$2,026 million** on December 31, 2022, to **A$919 million** on June 30, 2023[67](index=67&type=chunk) - Net Debt Ratio: Effectively **zero**[67](index=67&type=chunk) - Interest-Bearing Liabilities: **A$165 million** (December 31, 2022: **A$673 million**), primarily lease liabilities, with bank loans fully repaid[67](index=67&type=chunk) - Available Debt Facilities: **A$246 million** of undrawn facilities from a **A$1.2 billion** syndicated facility[68](index=68&type=chunk) [Capital Expenditure and Commitments](index=21&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure cash flow for H1 2023 was A$295 million, primarily for property, plant, and equipment, with capital commitments totaling A$202 million - Capital Expenditure Cash Flow: **A$295 million** (H1 2022: **A$132 million**)[69](index=69&type=chunk) - Capital Commitments: **A$202 million** (December 31, 2022: **A$222 million**)[69](index=69&type=chunk) [Material Investments](index=21&type=section&id=Material%20Investments) The company pursues internal growth through brownfield expansions and development projects, including the Moolarben Coal Handling and Preparation Plant expansion and the Stratford Renewable Energy Centre - Internal Growth Strategy: Committed to advancing brownfield expansion and development projects, funded by operating cash flows[70](index=70&type=chunk) - Moolarben Expansion: Upgrade to expand the Coal Handling and Preparation Plant capacity to **16 million tonnes** was commissioned during the reporting period[70](index=70&type=chunk) - Stratford Renewable Energy Centre: Plans for pumped hydro and solar farm projects aim for resource reuse of the land after coal production ceases[70](index=70&type=chunk) - Shandong Energy Support: Shandong Energy committed to providing financial support in the coming years for potential acquisitions, finance leases, or additional financial support for Watagan[70](index=70&type=chunk) [Material Acquisitions and Disposals](index=21&type=section&id=Material%20Acquisitions%20and%20Disposals) No material acquisitions or disposals occurred during the reporting period - No material acquisitions or disposals[71](index=71&type=chunk) [Employees](index=22&type=section&id=Employees) As of June 30, 2023, the Group had approximately 3,437 employees, with a focus on capability development, diversity, and inclusion initiatives - Number of Employees: Approximately **3,437 employees**[72](index=72&type=chunk) - Total Employee Costs: **A$348 million** (H1 2022: **A$329 million**)[72](index=72&type=chunk) - Remuneration Policy: Ensures fair remuneration aligned with the Group's and shareholders' long-term interests and diversity policy[72](index=72&type=chunk) - Yancoal Learning Academy (YLA): Launched in February 2023, offering short-term soft skills training courses[72](index=72&type=chunk) - Diversity and Inclusion: Aiming to increase female workforce representation to **15%**, actively promoting Indigenous inclusion awareness, and establishing a Diversity and Inclusion Committee[72](index=72&type=chunk)[73](index=73&type=chunk) [Events After the Reporting Period](index=22&type=section&id=Events%20After%20the%20Reporting%20Period) The Board declared an interim dividend of A$489 million (A$0.3700 per share) on August 16, 2023, with no other significant post-reporting period events - Interim Dividend: The Board declared a 2023 interim dividend of **A$489 million**, or **A$0.3700 per share**, with a record date of September 6, 2023, and payment date of September 20, 2023[74](index=74&type=chunk) [Financial and Other Risk Management](index=22&type=section&id=Financial%20and%20Other%20Risk%20Management) The Group faces currency, price, interest rate, credit, and liquidity risks, managed through forward foreign exchange contracts, with A$71 million in provisionally priced sales outstanding - Principal Financial Risks: Currency risk, price risk, interest rate risk, credit risk, and liquidity risk[75](index=75&type=chunk) - Risk Management: Manages operating foreign exchange risk through forward foreign exchange contracts issued by banks[75](index=75&type=chunk) - Provisionally Priced Sales: As of June 30, 2023, **A$71 million** in provisionally priced sales remained subject to final pricing[75](index=75&type=chunk) [Contingent Liabilities](index=22&type=section&id=Contingent%20Liabilities) Contingent liabilities as of June 30, 2023, include A$955 million in bank guarantees and performance bonds, and A$554 million for mining lease rehabilitation costs June 30, 2023 Contingent Liabilities (million AUD) | Item | Amount | | :--- | :--- | | Bank Guarantees and Performance Bonds | 955 | | Mining Lease Rehabilitation Cost Guarantees | 554 | - Letter of Support for Middlemount Mine Joint Venture[76](index=76&type=chunk) [Assets Pledged](index=22&type=section&id=Assets%20Pledged) The Group's A$1,200 million syndicated bank facilities, with A$954 million drawn, are secured by assets of Yancoal Resources Pty Ltd and Coal & Allied Industries Pty Ltd - Total Facilities: **A$1,200 million**[77](index=77&type=chunk) - Drawn Balance: **A$954 million**[77](index=77&type=chunk) - Pledged Assets: Assets of Yancoal Resources Pty Ltd and Coal & Allied Industries Pty Ltd consolidated group, with a carrying value of **A$10,766 million**[77](index=77&type=chunk) [Future Outlook](index=23&type=section&id=Future%20Outlook) Production is expected to return to historical levels in coming quarters, with 2023 saleable coal equity guidance of 31-36 million tonnes and cash operating costs of A$92-A$102 per tonne - Production Outlook: Production is expected to return to historical levels in coming quarters as mining inventories are rebuilt and productivity improves[78](index=78&type=chunk) - 2023 Saleable Coal Equity Guidance Range: **31 million to 36 million tonnes**[78](index=78&type=chunk) - Unit Cost Outlook: Continuously improving productivity is expected to contribute to lower unit costs[78](index=78&type=chunk) - 2023 Cash Operating Cost Guidance Range: **A$92 to A$102 per tonne**[78](index=78&type=chunk) - 2023 Capital Expenditure Guidance Range: Revised downwards from previous **A$750 million to A$900 million** to **A$600 million to A$750 million**[78](index=78&type=chunk) [Consolidated Financial Statements](index=24&type=section&id=Consolidated%20Financial%20Statements) This section presents the consolidated financial statements, including the income statement, balance sheet, statement of changes in equity, and cash flow statement [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=24&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2023, the company reported revenue of A$3,976 million and profit after tax of A$973 million, a significant decrease from the prior corresponding period Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (million AUD) | Metric | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Revenue | 3,976 | 4,776 | | Profit Before Income Tax | 1,388 | 2,455 | | Profit After Income Tax | 973 | 1,738 | | Basic Earnings Per Share (AUD cents) | 73.7 | 131.6 | [Consolidated Statement of Financial Position](index=25&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, total assets were A$10,913 million, total liabilities were A$2,820 million, and net assets were A$8,093 million Consolidated Statement of Financial Position Summary (million AUD) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | 2,056 | 3,810 | | Total Non-Current Assets | 8,857 | 8,991 | | Total Assets | 10,913 | 12,801 | | Total Current Liabilities | 1,015 | 2,532 | | Total Non-Current Liabilities | 1,805 | 2,239 | | Total Liabilities | 2,820 | 4,771 | | Net Assets | 8,093 | 8,030 | [Consolidated Statement of Changes in Equity](index=26&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to Yancoal Australia Ltd shareholders was A$8,091 million, primarily influenced by profit after tax and dividends paid - Equity and Reserves Attributable to Yancoal Australia Ltd Shareholders: **A$8,091 million**[81](index=81&type=chunk) - Profit After Income Tax: **A$973 million**[81](index=81&type=chunk) - Dividends Paid: (**A$924 million**)[81](index=81&type=chunk) [Consolidated Statement of Cash Flows](index=27&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Net cash inflow from operating activities was A$89 million, net cash outflow from investing activities was A$282 million, and net cash outflow from financing activities was A$1,447 million, leading to a net cash decrease of A$1,640 million Consolidated Statement of Cash Flows Summary (million AUD) | Cash Flow Type | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 89 | 2,750 | | Net Cash (Outflow)/Inflow from Investing Activities | (282) | 75 | | Net Cash Outflow from Financing Activities | (1,447) | (972) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (1,640) | 1,853 | [Notes to the Consolidated Financial Statements](index=29&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes supporting the consolidated financial statements, covering accounting policies, performance, assets, liabilities, and group structure [Basis of Preparation of Half-Year Financial Report](index=29&type=section&id=Basis%20of%20Preparation%20of%20Half-Year%20Financial%20Report) The half-year financial report is prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001, complying with IFRS - Basis of Preparation: Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Act 2001[84](index=84&type=chunk) - International Financial Reporting Standards: Complies with International Financial Reporting Standards issued by the International Accounting Standards Board[84](index=84&type=chunk) - Review Report: The independent auditor's review report on the consolidated financial statements is unmodified[84](index=84&type=chunk) [Performance](index=30&type=section&id=Performance) This section provides detailed notes on segment information, revenue, other income, expenses, tax, and earnings per share - Segment Information: Segmented by New South Wales and Queensland regions[86](index=86&type=chunk) - Revenue Sources: Coal sales, freight revenue, royalty income, etc[90](index=90&type=chunk) - Major Customers: Revenue from the **top five external customers** accounted for **41% of coal sales revenue**[89](index=89&type=chunk) [Segment Information](index=30&type=section&id=Segment%20Information) The report segments operations by New South Wales and Queensland, disclosing revenue, operating EBITDA, and total assets for each segment, with New South Wales contributing most revenue and profit H1 2023 Segment Revenue and Operating EBITDA (million AUD) | Segment | Total Segment Revenue | Operating EBITDA | | :--- | :--- | :--- | | New South Wales | 3,421 | 1,699 | | Queensland | 432 | 84 | | Head Office | — | 38 | | Total | 3,853 | 1,821 | June 30, 2023 Segment Assets (million AUD) | Segment | Segment Assets | Interests in Other Entities | Total Assets | | :--- | :--- | :--- | :--- | | New South Wales | 8,654 | 180 | 8,834 | | Queensland | 675 | — | 675 | | Head Office | 1,160 | 244 | 1,404 | | Total | 10,489 | 424 | 10,913 | [Revenue](index=32&type=section&id=Revenue) Sales revenue for H1 2023 was A$3,853 million, with total revenue of A$3,976 million, primarily from Japan, Taiwan, South Korea, and China H1 2023 Sales Revenue Composition (million AUD) | Revenue Source | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Coal Sales | 3,853 | 4,799 | | Interest Income | 52 | 67 | | Freight Revenue | 42 | 38 | | Royalty Income | 12 | 28 | | Other Items | 17 | 14 | | Total Revenue | 3,976 | 4,776 | H1 2023 Revenue by Major Geographic Market (million AUD) | Geographic Market | New South Wales | Queensland | Total | | :--- | :--- | :--- | :--- | | Japan | 1,089 | 148 | 1,237 | | Taiwan | 778 | — | 778 | | South Korea | 542 | 138 | 680 | | China | 588 | — | 588 | | Thailand | 183 | — | 183 | | Vietnam | 94 | 62 | 156 | | India | 15 | 79 | 94 | | Australia | 56 | — | 56 | | Chile | 48 | — | 48 | | Indonesia | 28 | — | 28 | | Cambodia | 5 | — | 5 | | Total | 3,426 | 427 | 3,853 | - Provisionally Priced Sales: As of June 30, 2023, **A$71 million** of provisionally priced sales had not yet been finalized[92](index=92&type=chunk) [Other Income](index=34&type=section&id=Other%20Income) Other income for H1 2023 was A$25 million, mainly comprising net foreign exchange gains, a 63% decrease from the prior period H1 2023 Other Income (million AUD) | Item | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Net Foreign Exchange Gains | 23 | 62 | | Re-measurement of Royalty Receivables Gain | — | 31 | | Miscellaneous Income | 2 | 4 | | Total | 25 | 97 | [Expenses](index=34&type=section&id=Expenses) This section details the composition and changes in employee benefits, finance costs, and other operating expenses H1 2023 Employee Benefits (million AUD) | Item | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Employee Benefits | 318 | 303 | | Superannuation Contributions | 30 | 26 | | Total | 348 | 329 | H1 2023 Finance Costs (million AUD) | Item | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Lease Costs | 5 | 4 | | Discount unwind on provisions and deferred payables | 14 | 12 | | Other Interest Expenses | 10 | 110 | | Total | 29 | 126 | H1 2023 Other Operating Expenses (million AUD) | Item | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Increase in Rehabilitation Provisions | 41 | 30 | | Rates and Other Levies | 18 | 15 | | Insurance | 15 | 11 | | Bank Fees and Other Charges | 13 | 20 | | Contingent Royalty Payments | 13 | 12 | | Information Technology | 13 | 8 | | Re-measurement of Royalty Receivables Loss | 11 | — | | Travel and Accommodation | 9 | 5 | | Re-measurement of Contingent Royalties Loss | 8 | 48 | | Rental Expenses | 2 | 2 | | Other Operating Expenses | 10 | 10 | | Total | 153 | 161 | - Largest Supplier: In the first six months of 2023, **9.0%** of total operating expenses were from a single supplier, and **27.0%** were from the top five suppliers[98](index=98&type=chunk) [Tax](index=35&type=section&id=Tax) Income tax expense for H1 2023 was A$415 million, with an effective tax rate of 29.9%, slightly below the Australian corporate tax rate of 30% H1 2023 Income Tax Expense (million AUD) | Item | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Income Tax Expense | (415) | (717) | - Effective Tax Rate: **29.9%** (June 30, 2022: **29.2%**)[99](index=99&type=chunk) [Earnings Per Share](index=35&type=section&id=Earnings%20Per%20Share) Basic earnings per share for H1 2023 was 73.7 AUD cents, with diluted earnings per share at 73.4 AUD cents, calculated from profit from continuing operations of A$973 million H1 2023 Earnings Per Share (AUD cents) | Metric | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Total Basic Earnings Per Share | 73.7 | 131.6 | | Total Diluted Earnings Per Share | 73.4 | 131.2 | - Profit Used for EPS Calculation: Profit from continuing operations was **A$973 million**[101](index=101&type=chunk) - Weighted Average Number of Ordinary Shares: **1,320,439,437 shares** for basic EPS, and **1,326,472,557 shares** for diluted EPS[102](index=102&type=chunk) [Operating Assets and Liabilities](index=36&type=section&id=Operating%20Assets%20and%20Liabilities) This section provides detailed notes on property, plant and equipment, mining tenements, asset impairment, exploration and evaluation assets, intangible assets, trade and other receivables, inventories, and trade and other payables - Property, Plant and Equipment Net Book Value: **A$3,514 million**[103](index=103&type=chunk) - Mining Tenements Net Book Value: **A$4,255 million**[104](index=104&type=chunk) - Intangible Assets Net Book Value: **A$132 million**[110](index=110&type=chunk) - Trade Receivables: **A$515 million**[111](index=111&type=chunk) - Inventories: **A$320 million**[113](index=113&type=chunk) - Trade Payables: **A$507 million**[114](index=114&type=chunk) [Property, Plant and Equipment](index=36&type=section&id=Property,%20Plant%20and%20Equipment) As of June 30, 2023, the net book value of property, plant and equipment was A$3,514 million, with A$310 million in additions during the period, including assets under construction, mine development, and plant and equipment June 30, 2023 Net Book Value of Property, Plant and Equipment (million AUD) | Item | Net Book Value | | :--- | :--- | | Assets Under Construction | 354 | | Land and Buildings Held Indefinitely | 374 | | Mine Development | 1,383 | | Plant and Equipment | 1,273 | | Right-of-Use Assets | 130 | | Total | 3,514 | - Additions During Period: **A$310 million**[103](index=103&type=chunk) [Mining Tenements](index=36&type=section&id=Mining%20Tenements) As of June 30, 2023, the net book value of mining tenements was A$4,255 million, with A$176 million in amortisation during the period - Mining Tenements Net Book Value: **A$4,255 million**[104](index=104&type=chunk) - Amortisation During Period: (**A$176 million**)[104](index=104&type=chunk) [Impairment of Assets](index=36&type=section&id=Impairment%20of%20Assets) Recoverable amounts for all cash-generating units exceeded their carrying values, with no additional impairment, based on key assumptions including coal prices, exchange rates, and discount rates - Cash Generating Units: New South Wales mines, Yarrabee, and Middlemount are considered separate cash-generating units[105](index=105&type=chunk) - Impairment Assessment: Recoverable amounts for all cash-generating units exceeded their carrying values, resulting in no additional impairment[105](index=105&type=chunk) - Key Assumptions: Coal prices, foreign exchange rates, production and capital expenditure, coal reserves and resources, and discount rates[105](index=105&type=chunk)[106](index=106&type=chunk) - Sensitivity Analysis: Impact of changes in coal prices, exchange rates, and discount rates on recoverable amounts[107](index=107&type=chunk) [Exploration and Evaluation Assets](index=38&type=section&id=Exploration%20and%20Evaluation%20Assets) As of June 30, 2023, the net book value of exploration and evaluation assets was A$233 million - Exploration and Evaluation Assets Net Book Value: **A$233 million**[108](index=108&type=chunk) [Intangible Assets](index=39&type=section&id=Intangible%20Assets) As of June 30, 2023, the net book value of intangible assets was A$132 million, primarily comprising goodwill, computer software, and water rights, with goodwill allocated to the Yarrabee mine June 30, 2023 Net Book Value of Intangible Assets (million AUD) | Item | Net Book Value | | :--- | :--- | | Goodwill | 60 | | Computer Software | 6 | | Water Rights | 56 | | Other | 10 | | Total | 132 | - Goodwill Allocation: Goodwill has been allocated to the Yarrabee mine[110](index=110&type=chunk) [Trade and Other Receivables](index=39&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2023, current trade and other receivables totaled A$580 million, with non-current at A$94 million, and all trade receivables within 0-90 days June 30, 2023 Trade and Other Receivables (million AUD) | Item | Current | Non-Current | | :--- | :--- | :--- | | Trade Receivables from Contracts with Customers | 515 | — | | Other Trade Receivables | 65 | — | | Amounts Receivable from Other Entities | — | 21 | | Long-Term Service Provision Receivables | — | 73 | | Total | 580 | 94 | - Trade Receivables Ageing: As of June 30, 2023, total receivables of **A$515 million** were all within the 0-90 day category[111](index=111&type=chunk) [Inventories](index=40&type=section&id=Inventories) As of June 30, 2023, total inventories were A$320 million, primarily comprising coal, tires, and spare parts June 30, 2023 Inventories (million AUD) | Item | Amount | | :--- | :--- | | Coal — Lower of Cost and Net Realizable Value | 168 | | Tires and Spare Parts — Cost | 147 | | Fuel — Cost | 5 | | Total | 320 | [Trade and Other Payables](index=40&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2023, total trade and other payables were A$678 million, primarily trade payables of A$507 million, with an average credit period of 60 days June 30, 2023 Trade and Other Payables (million AUD) | Item | Amount | | :--- | :--- | | Trade Payables | 507 | | Accrued Wages and Salaries | 132 | | Interest Payable | — | | Other Payables | 39 | | Total | 678 | - Trade Payables Credit Period: Average credit period for trade payables is **60 days**[114](index=114&type=chunk) [Capital Structure and Financing](index=40&type=section&id=Capital%20Structure%20and%20Financing) This section details interest-bearing liabilities, contributed equity, share-based payments, dividends, reserves, contingencies, and fair value measurements of assets and liabilities - Total Interest-Bearing Liabilities: **A$165 million**[115](index=115&type=chunk) - Total Contributed Equity: **A$6,698 million**[121](index=121&type=chunk) - Dividends: 2022 final dividend of **A$924 million** declared and paid[124](index=124&type=chunk) - Total Reserves: (**A$250 million**)[125](index=125&type=chunk) [Interest-Bearing Liabilities](index=40&type=section&id=Interest-Bearing%20Liabilities) As of June 30, 2023, total interest-bearing liabilities were A$165 million, primarily lease liabilities, with all bank loans fully repaid. The company has A$1.2 billion in secured facilities, with A$954 million drawn June 30, 2023 Interest-Bearing Liabilities (million AUD) | Item | Current | Non-Current | Total | | :--- | :--- | :--- | :--- | | Lease Liabilities | 45 | 120 | 165 | | Bank Loans | — | — | — | | Total | 45 | 120 | 165 | - Bank Loan Repayment: Syndicated term loan of **US$333 million** fully repaid on March 31, 2023[117](index=117&type=chunk) - Secured Facilities: **A$1.2 billion** in secured facilities, with **A$954 million** drawn, secured by assets of Yancoal Resources Pty Ltd and Coal & Allied Industries Pty Ltd consolidated group[118](index=118&type=chunk) - Contractual Maturity Cash Flows: Total cash flows for lease liabilities are **A$186 million**[120](index=120&type=chunk) [Contributed Equity](index=42&type=section&id=Contributed%20Equity) As of June 30, 2023, total contributed equity was A$6,698 million, including ordinary shares, contingent value rights, and related party loan contributions June 30, 2023 Contributed Equity (million AUD) | Item | Amount | | :--- | :--- | | Ordinary Shares | 6,219 | | Contingent Value Rights | 263 | | Related Party Loan Contributions | 216 | | Total | 6,698 | [Share-Based Payments](index=42&type=section&id=Share-Based%20Payments) As of June 30, 2023, 6,561,906 performance rights were outstanding under the Long Term Incentive Plan, limited to senior executives and representing 0.5% of issued share capital - Long Term Incentive Plan: Participation is limited to the Group's senior executives[122](index=122&type=chunk) - Performance Rights Outstanding: As of June 30, 2023, **6,561,906 performance rights** were outstanding under the Long Term Incentive Plan[123](index=123&type=chunk) - Maximum Shares Issuable: **6,561,906 shares**, representing **0.5%** of issued share capital as of June 30, 2023[124](index=124&type=chunk) - Vesting Conditions: Performance rights under the Long Term Incentive Plan will vest based on cost outcomes and EPS targets[124](index=124&type=chunk) [Dividends](index=43&type=section&id=Dividends) The 2022 final dividend of A$924 million, or A$0.7000 per share, fully franked, was paid on April 28, 2023 - 2022 Final Dividend: **A$924 million**, or **A$0.7000 per share**, fully franked, paid on April 28, 2023[124](index=124&type=chunk) [Reserves](index=43&type=section&id=Reserves) As of June 30, 2023, total reserves were (A$250) million, primarily comprising a hedging reserve of (A$256) million, used to record gains or losses on cash flow hedges recognized directly in equity June 30, 2023 Reserve Balances (million AUD) | Item | Amount | | :--- | :--- | | Hedging Reserve | (256) | | Treasury Share Reserve | (9) | | Employee Compensation Reserve | 14 | | Other Reserves | 1 | | Total | (250) | - Hedging Reserve: Used to record gains or losses on cash flow hedges recognized directly in equity through other comprehensive income[126](index=126&type=chunk) - Hedging Losses to be Recovered in Future Periods: Total hedging losses to be recovered in future periods amounted to **A$365 million** for the twelve months ended June 30, 2023[128](index=128&type=chunk) [Contingencies](index=44&type=section&id=Contingencies) Contingent liabilities as of June 30, 2023, included A$955 million in bank guarantees and performance bonds, and a letter of support for the Middlemount Coal joint venture June 30, 2023 Contingent Liabilities (million AUD) | Item | Amount | | :--- | :--- | | Performance Guarantees Provided by Parent Entity and Group to Third Parties | 89 | | Guarantees Provided by Parent Entity and Group to Government Authorities as Required by Regulation | 119 | | Performance Guarantees Provided by Joint Ventures to Third Parties | 235 | | Guarantees Provided by Joint Ventures to Government Authorities as Required by Regulation | 431 | | Guarantees Held on Behalf of Related Parties | 81 | | Total | 955 | - Letter of Support for Middlemount Mine: The Company issued a letter of support to Middlemount Coal Pty Ltd ("Middlemount"), a joint venture of the Group, on March 4, 2015, committing to provide financial support[130](index=130&type=chunk) [Fair Value Measurement of Assets and Liabilities](index=45&type=section&id=Fair%20Value%20Measurement%20of%20Assets%20and%20Liabilities) Royalty receivables are classified as Level 3 financial instruments, with fair value determined using discounted future cash flows, and sensitive to coal prices, exchange rates, and discount rates - Fair Value Hierarchy: Royalty receivables are classified as Level 3 financial instruments[130](index=130&type=chunk) - Valuation Technique: The fair value of royalty receivables is calculated as the fair value of the right to receive a **4% royalty** on FOB (free on board, including loading charges) sales from Middlemount mine, determined using discounted future cash flows[132](index=132&type=chunk) - Sensitivity Analysis: Impact of changes in coal prices, exchange rates, and discount rates on the fair value of royalty receivables[133](index=133&type=chunk) [Group Structure](index=46&type=section&id=Group%20Structure) This section discloses interests in associates and joint ventures, as well as related party transactions, identifying Yancoal Australia as the parent company - Parent Company: Yancoal Australia Ltd[137](index=137&type=chunk) - Major Shareholder: Yanzhou Coal Mining Company Limited[137](index=137&type=chunk) - Ultimate Parent Company: Shandong Energy Group Co., Ltd[137](index=137&type=chunk) - Associates and Joint Ventures: Includes Port Waratah Coal Services Ltd, Middlemount Coal Pty Ltd, etc[135](index=135&type=chunk) [Interests in Other Entities](index=46&type=section&id=Interests%20in%20Other%20Entities) The Group holds interests in associates and joint ventures, including Port Waratah Coal Services Ltd and Middlemount Coal Pty Ltd, with total investment carrying value of A$424 million June 30, 2023 Interests in Associates and Joint Ventures (million AUD) | Entity Name | Nature of Relationship | Carrying Value of Investment | | :--- | :--- | :--- | | Port Waratah Coal Services Ltd | Associate | 180 | | Middlemount Coal Pty Ltd | Joint Venture | 244 | | Total | | 424 | - Amounts Recognized in Profit or Loss: **A$6 million** for Middlemount Coal Pty Ltd, and **A$10 million** for Port Waratah Coal Services Ltd[135](index=135&type=chunk) [Related Party Transactions](index=47&type=section&id=Related%20Party%20Transactions) The Group engaged in various transactions with related parties, including coal sales, marketing and administrative services, loan repayments, and port fee payments H1 2023 Transactions with Other Related Parties (thousand AUD) | Transaction Type | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Sales of Coal to Yancoal International Trading Co., Ltd. | 99,244 | 44,162 | | Sales of Coal to Yanzhou Hainan | 65,568 | 26,201 | | Sales of Coal to Shaneng (Qingdao) Smart Industry Technology Co., Ltd. | 42,046 | — | | Provision of Marketing and Administrative Services to Yancoal International Group | 9,595 | 5,909 | | Repayment of Loan from Middlemount | — | 200,000 | | Lease Payments for NHL Trucks with Bank of China (Hong Kong) Limited | 8,375 | — | | Payment of Port Fees to Newcastle Coal Infrastructure Group | (144,267) | (74,680) | | Payment of Port Fees to PWCS | (27,932) | (15,375) | | Payment of Port Fees to WICET | (25,724) | (26,329) | | Royalty Income Received from Middlemount | 12,265 | 28,433 | | Dividend Income Received from PWCS | 6,833 | 6,354 | - Outstanding Balances: As of the end of the reporting period, **A$9,756 thousand** was receivable from related parties, and **A$66,391 thousand** was payable to related parties[141](index=141&type=chunk) - Related Party Guarantees: The Group's financing institutions provided guarantees of **A$81,356 thousand** on behalf of Yancoal International Group[143](index=143&type=chunk) - Parent Company Letter of Support: The directors of Yanzhou Coal Mining Company Limited provided a letter of support, committing to ensure the Group continues to operate and remains solvent[144](index=144&type=chunk) [Other Disclosures](index=50&type=section&id=Other%20Disclosures) This section covers capital commitments and events occurring after the reporting period, including the declaration of the 2023 interim dividend - Capital Commitments: As of June 30, 2023, capital expenditure contracted but not recognized as liabilities totaled **A$202 million**[145](index=145&type=chunk) - Events After Reporting Period: The Board declared a 2023 interim dividend of **A$489 million**, or **A$0.3700 per share**, on August 16, 2023[145](index=145&type=chunk) [Commitments](index=50&type=section&id=Commitments) As of June 30, 2023, capital expenditure contracted but not recognized as liabilities totaled A$202 million, primarily for property, plant, and equipment June 30, 2023 Capital Commitments (million AUD) | Item | Within one year | After one year but within five years | | :--- | :--- | :--- | | Property, Plant and Equipment (Attributable to Joint Operations) | 191 | 2 | | Property, Plant and Equipment (Other) | 8 | — | | Exploration and Evaluation (Attributable to Joint Operations) | 1 | — | | Total | 200 | 2 | [Events After the Reporting Period](index=50&type=section&id=Events%20After%20the%20Reporting%20Period) The Board declared an interim dividend of A$489 million (A$0.3700 per share) on August 16, 2023, with a record date of September 6, 2023, and payment date of September 20, 2023 - Interim Dividend: The Board declared a 2023 interim dividend of **A$489 million**, or **A$0.3700 per share**[145](index=145&type=chunk) [Directors' Declaration](index=51&type=section&id=Directors'%20Declaration) The Board declares that the financial statements fairly represent the Group's financial position and performance, and the company can meet its debts as they fall due - Financial Statement Truthfulness: The financial statements and notes on pages 27 to 57 truly and fairly represent the Group's financial position as of June 30, 2023, and its performance for the half-year ended on that date[146](index=146&type=chunk) - Solvency: There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable[146](index=146&type=chunk) [Independent Auditor's Review Report](index=52&type=section&id=Independent%20Auditor's%20Review%20Report) The independent auditor issued an unmodified review opinion on Yancoal Australia Ltd's half-year financial statements, finding no non-compliance with the Corporations Act 2001, and did not express an audit opinion due to the limited scope of the review - Review Conclusion: No matters were identified that lead the auditor to believe the half-year financial statements do not comply with the Corporations Act 2001, including giving a true and fair view of the Group's financial position as of June 30, 2023, and its financial performance for that half-year, and complying with Australian Accounting Standard 134 - 'Interim Financial Reporting' and the Co

Financial Performance - Yancoal Australia achieved record revenue of AUD 10.5 billion in 2022[4] - The company reported record operating EBITDA of AUD 7 billion, with an EBITDA margin of 65%[4] - Yancoal Australia generated a record profit of AUD 3.6 billion in 2022[4] - The average realized price for thermal coal was AUD 372 per ton, while metallurgical coal averaged AUD 405 per ton, leading to an overall average selling price of AUD 378 per ton[4] - The total sales revenue exceeded AUD 10 billion, marking a significant increase from prior years[8] - Revenue rose by 95% from AUD 5,404 million in 2021 to AUD 10,548 million in 2022, primarily due to the increase in actual coal prices[60] - The operating profit before interest, tax, depreciation, and amortization increased to AUD 6,959 million in 2022, with a profit margin of 65%[60] - The company achieved a net cash position starting July 2022, indicating improved financial health[21] - The dividend payout for 2022 was AUD 1.23 per share, with a payout ratio of 118%[18] - The company declared a fully franked final dividend of AUD 0.70 per share for the first time, benefiting shareholders directly[4] Production and Sales - The coal production for 2022 was 50.5 million tons, with a sales volume of 29.3 million tons, both down approximately 20% compared to 2021[6] - Total saleable coal production for 2022 was 14.9 million tons, with 8.1 million tons from Mount Thorley Warkworth and 9.6 million tons from Hunter Valley Operations[39] - The average actual price of coal in 2022 was AUD 378 per ton, a 168% increase from 2021, driven by strong coal prices[60] - The company expanded its market presence, selling coal to 13 target markets, with significant sales growth in Europe[4] - The company faced operational challenges due to extreme weather conditions, which affected mining productivity and equipment availability[59] Debt and Financial Management - The company repaid AUD 2.6 billion in debt and plans to clear all external interest-bearing loans for the first time since its establishment[4] - The company has repaid approximately USD 801 million in debt in July 2022, USD 1 billion in debt in October 2022, and USD 459 million in debt in December 2022, totaling USD 2.76 billion in debt repayments[61] - The company expects to save approximately AUD 294 million in financing costs in 2023 due to debt repayments made in 2022[61] - The company maintained a net cash position at the end of 2022, improving the debt-to-equity ratio from 24% at the end of 2021 to 0%[60] Safety and Training - Over 90% of Yancoal Australia's employees participated in safety training, maintaining safety statistics above the industry average[2] - The total injury frequency rate at the end of the year was 8.1, continuing a downward trend since 2018[6] - Yancoal Australia's total recordable injury frequency rate (TRIFR) at the end of 2022 was 8.11, down from 8.4 at the end of 2021, indicating effective safety measures[52] - The company's TRIFR is below the industry weighted average of 8.42, demonstrating a commitment to safety and operational excellence[52] - In 2022, Yancoal Australia initiated a five-year plan to standardize health, safety, and training management across all operations, aiming to enhance safety culture[52] Community and Environmental Initiatives - Community contributions increased to AUD 1.8 million in 2022, supporting local initiatives and organizations[6] - Yancoal Australia invested AUD 1.84 million in community support programs in 2022, positively impacting local health, environment, education, arts, culture, and community activities[53] - The company is committed to reducing operational emissions and investing in low-emission technologies to mitigate downstream emissions from coal consumption[53] - Yancoal Australia is actively developing two renewable energy projects, including a feasibility study for the Stratford Renewable Energy Centre[3] - The company is collaborating with Green Gravity to explore the potential application of innovative energy storage technology at a former coal mine site in New South Wales[53] Future Outlook and Strategic Initiatives - Future outlook includes potential market expansion and strategic initiatives to enhance operational capabilities and efficiency[40] - The company aims to maintain a strong financial position while exploring opportunities for mergers and acquisitions in the coal sector[40] - The company is focused on compliance and corporate governance, with dedicated roles for legal and compliance oversight[71] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[155] - The company is evaluating potential acquisitions and organic growth opportunities, including additional coal assets and renewable energy projects[196] Executive Compensation and Governance - The executive compensation framework aims to align with shareholder interests, focusing on economic performance as a core part of the overall compensation plan[91] - The long-term incentive plan rewards participants based on performance conditions, with 60% tied to earnings per share and 40% based on further performance metrics[91] - The board has discretion to settle deferred short-term and long-term incentive plan rights in cash, with cash equivalents based on the market value of shares at the time of settlement[91] - The company has made structural adjustments to the executive compensation framework to align participants' interests with those of the company and its shareholders[91] - The board oversees the appointment, remuneration, and performance of senior management, ensuring alignment with the company's strategic goals[103]

Financial Performance - Total revenue for the half-year ended June 30, 2022, was AUD 4,776 million, a significant increase from AUD 1,775 million in the same period of 2021, representing a change of 169%[5] - The company reported a pre-tax loss of AUD 2,455 million, compared to a pre-tax loss of AUD 177 million in the previous year, marking an increase of 1,487%[5] - Basic and diluted loss per share before non-recurring items was AUD 131.6 cents, a substantial improvement from a loss of AUD 9.8 cents in the prior year, reflecting a change of 1,443%[6] - The net profit after tax attributable to the owners of Yancoal Australia was AUD 1,738 million, a 1,447% increase from a loss of AUD 129 million in the first half of 2021[57] - The operating profit before tax for the half-year was AUD 2,581 million, reflecting a significant increase of 30,267% from a loss of AUD 56 million in the previous year[55] - The adjusted operating EBITDA for the half-year was AUD 3,001 million, representing a 677% increase from AUD 341 million in the previous year[55] - Operating EBITDA increased to AUD 3,153 million in H1 2022, with an operating EBITDA margin of 65%, compared to 23% in H1 2021[17] - The company reported a 614% increase in share of profit from associates, rising to AUD 72 million from a loss of AUD 14 million[55] Revenue Sources - Revenue surged by 269% from AUD 1,775 million in H1 2021 to AUD 4,776 million in H1 2022, driven by a 234% increase in actual coal prices[17] - Coal sales revenue reached AUD 4,799 million for the six months ended June 30, 2022, compared to AUD 1,736 million in the previous year, indicating a growth of about 176%[135] - The average actual price for thermal coal was AUD 298 per ton in H1 2022, while metallurgical coal averaged AUD 402 per ton, reflecting a more than threefold increase compared to the previous 12 months[16] - The average selling price of self-produced coal increased by 234% from AUD 94 per ton in H1 2021 to AUD 314 per ton in H1 2022, driven by a rise in global coal prices[39] - Revenue from customers in Japan, Taiwan, and South Korea accounted for approximately 67% of coal sales revenue[36] Production and Costs - Yancoal Australia reported a 6% decrease in raw coal production from 29.3 million tons in H1 2021 to 25.8 million tons in H1 2022, and a 10% decrease in salable coal production from 23.2 million tons to 20.8 million tons[15] - The average cash operating cost increased from AUD 66 per ton in H1 2021 to AUD 83 per ton in H1 2022, primarily due to lower production and external cost pressures such as high diesel prices and wage inflation[15] - The total raw coal production decreased by 12% from 29.3 million tons in H1 2021 to 25.8 million tons in H1 2022, with significant declines at major assets like Moranbah and Walker[40][41] - The total saleable coal production also fell by 10% from 23.2 million tons in H1 2021 to 20.8 million tons in H1 2022, primarily due to reduced raw coal output[41] - The company's cash operating cost per ton rose from AUD 64 in H1 2021 to AUD 83 in H1 2022, attributed to wet weather and inflationary pressures[39] Dividends and Shareholder Returns - The board declared an interim dividend of AUD 696 million, equating to AUD 0.5271 per share, with a record date of September 6, 2022, and a payment date of September 20, 2022[8] - The board of directors is required to declare dividends of at least 50% of net profit after tax or free cash flow, whichever is higher, excluding extraordinary items[21] - The company declared a total dividend of AUD 930 million for 2021, including a final dividend of AUD 0.5000 per share and a special dividend of AUD 0.2040 per share[171] Environmental and Community Initiatives - The company invested AUD 1.7 million in community support programs during the half-year, positively impacting local health, environment, education, arts, culture, and community activities[14] - The company is preparing for a transition to a low-carbon economy by evaluating processes for replacing diesel-powered mining equipment with electric alternatives and introducing renewable energy sources[14] - The company is focusing on reducing Scope 1 and Scope 2 emissions, including transitioning to renewable energy sources and replacing diesel-powered equipment[49] - The company donated AUD 0.5 million to assist flood victims in New South Wales and Queensland, benefiting 1,522 recipients[48] Operational Challenges - The company has experienced production impacts due to weather events, leading to revised operational cost guidance in the second quarter[20] - The company estimates a total loss of 6.2 million tonnes of raw coal (equity) due to extreme wet weather conditions impacting operations[37] - The COVID-19 pandemic has led to the highest reported positive cases and active isolations since the start of the pandemic, resulting in an estimated loss of 0.9 million tonnes of raw coal (equity)[37] Financial Position and Assets - The company had AUD 3,383 million in cash and cash equivalents as of June 30, 2022, with a capital debt ratio of 3% compared to 40% a year earlier[17] - Total assets increased by 1,847 million AUD to 13,647 million AUD, driven by the rise in current assets[97] - Total liabilities increased by 1,050 million AUD to 6,704 million AUD, primarily due to an increase in current liabilities[97] - Total equity rose by 797 million AUD to 6,943 million AUD, reflecting a net profit after tax of 1,738 million AUD offset by dividends paid[97] Strategic Plans and Future Outlook - Yancoal Australia plans to increase the annual production capacity at the Moraben open-cut mine from 14 million tons to 16 million tons within the next 12 months[18] - The company is considering acquisitions of additional coal assets and exploring opportunities in other minerals, energy, or renewable energy projects[18] - The company continues to assess its product portfolio and market conditions to align with customer needs and maximize operational profits amid favorable cyclical conditions in the coal market[20] - The company is focusing on brownfield expansions and exploration projects at Morabbin and Walker's Hill as part of its long-term growth strategy[115] Compliance and Governance - The company has adopted the corporate governance code as per the Hong Kong Listing Rules since its listing on December 6, 2018, and believes it has complied with the code during the reporting period[23] - The company’s board and senior management have confirmed compliance with the share trading policy during the reporting period[24] - The company’s share trading policy has been revised to ensure clarity on insider trading laws and guidelines for directors and employees[24]

Financial Performance - Yancoal achieved a record revenue of AUD 5.4 billion in 2021, with an EBITDA of AUD 2.53 billion, reflecting the company's strong operational performance during a challenging year[10]. - The company reported a net profit after tax of 791 million AUD for the year ended December 31, 2021[195]. - The operating profit before tax rose from a loss of AUD 218 million in 2020 to a profit of AUD 1,413 million in 2021, a 746% increase[175]. - The total revenue for the year ended December 31, 2021, was reported at 6,146 million AUD, a decrease from 6,163 million AUD in the previous year[198]. - The company reported a significant increase in revenue, achieving a total of AUD 1.2 billion for the fiscal year, representing a 15% year-over-year growth[62]. - The company achieved an operating EBITDA of AUD 2,531 million in 2021, with an EBITDA margin of 46%, up from 21% in 2020[45]. - The average actual selling price of metallurgical coal reached AUD 160 per ton, reflecting a 41% increase from the previous year[25]. - The average selling price of self-produced thermal coal rose from AUD 76 per ton in 2020 to AUD 134 per ton in 2021, an increase of 76%[152]. - The average cash operating cost per ton rose from AUD 59 in 2020 to AUD 67 in 2021, influenced by uncontrollable factors such as rising diesel prices and increased demurrage costs[45]. Production and Sales - The company sold 47.5 million tons of coal, with a sales volume of 37.5 million tons, while metallurgical coal sales increased from 11% to 15% of total sales[10]. - The company reported a total coal production of 3.7 million tons, with a significant increase of 50% compared to the previous period[24]. - Coal production decreased from 68.1 million tons in 2020 to 63.2 million tons in 2021, representing a decline of approximately 7%[135]. - The attributable sales volume for the year was 37.5 million tons, a 1% decrease from the previous year, with an increase in the ratio of coal to thermal coal[45]. - The company anticipates further growth in 2022, supported by its diversified asset portfolio and commitment to operational excellence[6]. - The projected coal production for the next fiscal year is expected to reach 4 million tons, indicating a growth strategy in response to market demand[24]. Cost Management - Operating costs per ton were AUD 67, with cash costs increasing by approximately AUD 3.50 per ton due to external factors such as rising diesel prices and adverse weather conditions[10]. - The average cash operating cost was AUD 114 per ton, which is significantly lower than the average selling price, ensuring healthy profit margins[25]. - The average cash operating cost per ton increased from AUD 59 in 2020 to AUD 67 in 2021, primarily due to wet weather in New South Wales and rising diesel prices[132]. - The company experienced a significant shift in sales distribution by customer region, with a 17% increase in sales to major Asian shipping markets[154]. Community and Environmental Initiatives - Total community donations in 2021 amounted to AUD 1.4 million, supporting various community initiatives and organizations[11]. - The company is committed to maintaining its ESG performance, which will be detailed in the upcoming ESG report[11]. - The company invested AUD 1.4 million in community support programs, positively impacting local health, environment, education, arts, culture, and community activities[39]. - Yancoal is preparing for a transition to a low-carbon economy by replacing diesel-powered mining equipment with electric alternatives and introducing renewable energy sources[39]. - The company aims to achieve zero harm in its operations, adhering to strict safety and environmental standards[35]. Strategic Initiatives and Future Outlook - Yancoal plans to diversify into renewable energy projects and other minerals to ensure long-term sustainability, aligning with global trends towards decarbonization[7]. - The company is focused on optimizing its sales strategy and enhancing product quality to better meet customer demands, particularly in high-end markets like Japan and South Korea[5]. - The company plans to expand into other minerals and commodities both domestically and internationally[11]. - The company is exploring opportunities in potash exploration licenses in Canada[56]. - The company is open to acquisitions of other mining assets or diversification into other minerals, energy, or renewable energy projects, subject to careful evaluation and board approval[45]. Governance and Management - The company has a strong management team with extensive experience in the coal mining industry, including the CEO and CFO[15][16]. - The board is responsible for overseeing risk management and financial investment decisions, including those related to climate change[41]. - The board emphasized the importance of corporate governance and compliance with regulations for listed companies[56]. - The management team has extensive experience in financial control and corporate governance[56]. - The company has established a register for interests and short positions as required by the Securities and Futures Ordinance[73]. Safety and Compliance - Yancoal Australia reported a total recordable injury frequency rate (TRIFR) of 8.4, an increase from 7.41 at the end of 2020, but still below the industry weighted average of 10.22[37]. - The company's safety performance was below the industry average, with a rolling TRIFR of 8.4[77]. - The TRIFR increase was attributed to the re-inclusion of the Watergong underground asset into the group's performance metrics[37]. - The company has implemented strict governance processes to improve its environmental, social, and governance performance[141]. Financial Stability and Debt Management - The company reduced its debt ratio to 24% and resumed dividend payments to shareholders[11]. - The debt-to-equity ratio improved from 41% at the end of 2020 to 24% by December 31, 2021, following the repayment of USD 500 million in debt[45]. - The company reported a net debt level that has returned to manageable levels, enhancing financial stability[26]. - The company has a commitment letter from Shandong Energy to support its operations and ensure solvency as long as it holds at least 51% of the company's shares[188].

Financial Performance - Total revenue for the six months ended June 30, 2021, was AUD 1,775 million, a decrease of 10% compared to AUD 1,969 million for the same period in 2020[3]. - Loss before tax (excluding non-recurring items) was AUD 177 million, compared to a loss of AUD 45 million in the previous year, representing a 293% increase in loss[3]. - Loss after tax (excluding non-recurring items) was AUD 177 million, compared to a profit of AUD 593 million in the previous year, indicating a 130% decline[3]. - Basic loss per share (excluding non-recurring items) was (9.8) cents, a 250% increase in loss compared to (2.8) cents in the previous year[4]. - The net loss attributable to shareholders was AUD 129 million, a significant decline from a profit of AUD 605 million in the first half of 2020, representing a 121% decrease[50]. - EBITDA for the first half of 2021 was AUD 341 million, down 17% from AUD 1,088 million in the previous year, resulting in an EBITDA margin of 19%[47]. - Operating EBITDA for the first half of 2021 was AUD 406 million, with an EBITDA margin of 23%, slightly down from 25% in the first half of 2020[15]. - The company reported a net loss before tax of AUD 177 million for the six months ended June 30, 2021, compared to a profit of AUD 593 million in the same period of 2020[129]. - The company reported a total of AUD 344 million in customer contract receivables as of June 30, 2021, up from AUD 223 million at the end of 2020[134]. Production and Sales - Coal production decreased by 11% to 29.3 million tons in the first half of 2021 compared to the same period in 2020, while salable coal production fell by 10% to 23.2 million tons[13]. - Revenue decreased by 10% to AUD 1,775 million in the first half of 2021, primarily due to an 8% reduction in coal sales[15]. - Coal sales volume fell by 8% from 17.8 million tons in H1 2020 to 17.2 million tons in H1 2021, attributed to a 5% reduction in available coal production and adverse weather conditions[55]. - The total saleable coal production from the company's major assets decreased from 16.8 million tons in the first half of 2020 to 15.4 million tons in the first half of 2021, reflecting an 8% decline[39]. - The proportion of thermal coal sales decreased from 85% in the first half of 2020 to 80% in the first half of 2021, impacting the overall pricing dynamics[35]. - The metallurgical coal production increased by 32% from 2.8 million tons in the first half of 2020 to 3.7 million tons in the first half of 2021, indicating a shift in production focus[39]. Costs and Expenses - The average cash operating cost increased from AUD 63 per ton in the first half of 2020 to AUD 66 per ton in the first half of 2021, influenced by rising diesel prices and production disruptions due to wet weather[13]. - The overall average cash operating cost per ton increased from AUD 63 in the first half of 2020 to AUD 66 in the first half of 2021, primarily due to wet weather in New South Wales and hard rock intrusion at Morabbin[36]. - Employee benefits decreased by 4% to AUD 284 million from AUD 295 million in the previous year[47]. - Transportation costs increased by 5% to AUD 289 million compared to AUD 276 million in the same period of 2020[47]. - Coal procurement expenses dropped by 51% from AUD 199 million in H1 2020 to AUD 97 million in H1 2021, mainly due to climate factors limiting procurement opportunities[74]. Shareholder Returns - No dividends were declared for the current financial period, compared to AUD 280 million or 21.21 cents per share in the previous year[6]. - The company reported a net financing cost of AUD 121 million, which increased by 52% compared to AUD 109 million in the previous year[47]. Market Conditions - The coal market and benchmark coal prices have shown significant improvement over the past six months due to favorable global economic conditions and international coal trade[18]. - The average API5 price was USD 60 per ton during the period, with a closing price of approximately USD 76 per ton[14]. - The company plans to enhance the production of higher-quality thermal coal to capture more price arbitrage between API5 and GCNewc indices[14]. Environmental and Safety Compliance - The total recordable injury frequency rate (TRIFR) increased to 8.4 from 7.4 in the previous year, although it remains below the industry average of 11.13[11]. - The company has implemented strict environmental approvals and processes to ensure compliance with regulatory requirements[11]. - The group has implemented systems and processes to manage compliance with environmental approvals and permits, with ongoing improvements and third-party audits[44]. Strategic Initiatives - The company aims to increase salable coal production to approximately 21.5 million tons in the second half of 2021[13]. - Yancoal is open to acquisitions of other mining assets and diversifying into other minerals, energy, or renewable energy projects[17]. - The company continues to assess its product portfolio and market conditions to align with customer needs and maximize operational profits[18]. - The company continues to seek quality acquisition opportunities and focuses on internal growth strategies[102]. Financial Position - The company has cash and cash equivalents of AUD 539 million as of June 30, 2021, with over AUD 800 million in undrawn debt facilities[16]. - Total assets decreased by AUD 178 million to AUD 10,877 million, mainly due to amortization leading to a decrease in mining rights of AUD 151 million[94]. - Total liabilities decreased by AUD 210 million to AUD 5,652 million, reflecting a reduction in interest-bearing liabilities by AUD 230 million[94]. - Total equity increased by AUD 32 million to AUD 5,225 million, primarily due to an increase in contributed equity of AUD 216 million[94]. Governance and Compliance - The company has adopted the corporate governance code as part of its policies since its listing on the Hong Kong Stock Exchange on December 6, 2018[20]. - The independent auditor confirmed compliance with independence requirements during the review period[32]. - The financial statements for the half-year ended June 30, 2021, were not audited but reviewed by the audit and risk management committee[28].

[Company Overview](index=2&type=section&id=Company%20Overview) [Chairman's Address](index=14&type=section&id=Chairman's%20Address) The Chairman reviewed a challenging 2020, highlighting the company's resilience through cost reduction and expressing confidence in future diversification - In 2020, the company faced three major challenges: the COVID-19 pandemic, a cyclical downturn in the coal market, and trade disruptions in Asia; despite weak coal prices, the company responded by improving operational efficiency[31](index=31&type=chunk)[602](index=602&type=chunk) - The company's contributions to community groups and organizations reached **AUD 2.2 million** in 2020, a **38% year-on-year increase**[31](index=31&type=chunk)[602](index=602&type=chunk) - The company's future strategy includes seeking expansion and potential diversification beyond coal into other mineral, energy, or renewable energy projects[32](index=32&type=chunk)[603](index=603&type=chunk) [CEO's Address](index=16&type=section&id=CEO's%20Address) The CEO reported achieving all operating targets in a challenging 2020 through cost reduction and market diversification, despite a 26% drop in coal prices 2020 Key Operating and Financial Indicators | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Average Coal Realized Price | AUD 82/tonne | AUD 111/tonne (-26%) | | Operating Cash Cost | AUD 59/tonne | AUD 64/tonne | | Attributable Marketable Coal Production | 39.3 million tonnes | - | | Operating Cash Flow | AUD 605 million | - | | Year-end Cash Balance | AUD 637 million | - | | EBITDA | AUD 748 million | AUD 1.72 billion | | EBITDA Margin | 21% | 14% (2016) | - To counter Asian coal trade disruptions, the company successfully redirected sales to emerging markets, exporting to **19 countries** in 2020[36](index=36&type=chunk)[607](index=607&type=chunk) - Significant investments in 2020 included acquiring an **additional 10% stake in Moolarben** and a **USD 775 million financing arrangement** with Yankuang Group for Watagan restructuring[37](index=37&type=chunk)[608](index=608&type=chunk) [Management Team](index=18&type=section&id=Management%20Team) The report introduces key management team members, including the Executive Director, CEO, and CFO, highlighting their extensive industry experience - Management changes in 2020 included the appointment of Mr. Zhang Ning as Executive Director, Vice Chairman, and Chairman of the Executive Committee, Mr. David Moult as CEO, and Mr. Su Ning as CFO[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Business and Asset Portfolio](index=20&type=section&id=Business%20and%20Asset%20Portfolio) The company holds a diversified portfolio of low-cost coal mining assets across Australia, detailing each mine's economic interest, production, and reserves 2020 Overview of Major Mine Assets (100% Basis) | Mine Name | Economic Interest | 2020 Marketable Production (million tonnes) | Marketable Reserves (million tonnes) | Implied Mine Life (years) | | :--- | :--- | :--- | :--- | :--- | | **Moolarben** | 95% | 19.7 | 201 | 10 | | **Mount Thorley Warkworth** | 82.9% | 11.9 | 188 | 16 | | **Hunter Valley Operations** | 51% | 12.0 | 640 | 53 | | **Yarrabee** | 100% | 3.0 | 37 | 12 | | **Watagan (Ashton)** | 100% | 1.8 | 11 | 6 | [Financial and Operational Highlights](index=22&type=section&id=Financial%20and%20Operational%20Highlights) The report highlights 2020's key financial and operational metrics, showing maintained operating margins through cost reduction despite lower coal prices, and a prudent dividend policy - In 2020, the company successfully reduced cash operating costs to counter declining average coal selling prices, aiming to maintain operating margins[66](index=66&type=chunk) - **2020 operating EBITDA and margins** were significantly higher than in 2016, reflecting five years of efficiency improvements despite similar coal prices[36](index=36&type=chunk)[70](index=70&type=chunk) - After distributing over **AUD 900 million in dividends** in the prior two years, the company adopted a prudent dividend policy in 2020 due to market challenges[70](index=70&type=chunk) [Business Strategy](index=24&type=section&id=Business%20Strategy) The core strategy focuses on leveraging tier-one assets for robust cash flow, strict capital allocation for growth and debt reduction, and potential diversification beyond coal - The core strategy is to generate robust cash flow through efficient operations and strict capital allocation to support growth, debt reduction, and shareholder returns[75](index=75&type=chunk) - The company is open to future growth, potentially diversifying into other mineral, energy, or renewable energy projects beyond coal[75](index=75&type=chunk) [Environmental, Social, and Governance (ESG)](index=25&type=section&id=Environmental,%20Social,%20and%20Governance%20(ESG)) The company views ESG as fundamental to its success, outlining 2020 initiatives on climate change, mental health, and Indigenous heritage, and detailing its economic contributions to Australia - The company considers ESG crucial for business success, developing strategic ESG issues in 2020 including climate change, mental health, and Indigenous cultural heritage[81](index=81&type=chunk) 2020 Economic Contributions to Australia | Contribution Type | Direct Impact | Indirect & Total Impact | | :--- | :--- | :--- | | **Value-Added Impact** | AUD 2.9 billion | AUD 7.4 billion | | **Employment Provided** | ~4,300 | ~38,200 | | **Wages & Salaries** | AUD 656 million | AUD 2.9 billion | | **Government Tax Contribution** | AUD 506 million | - | - In 2020, the company donated **AUD 2.2 million** to **135 community groups** through its support program, primarily for social and community (58%) and education and training (21%) initiatives[86](index=86&type=chunk)[88](index=88&type=chunk) [Board of Directors' Report](index=32&type=section&id=Board%20of%20Directors'%20Report) [Operating Review](index=32&type=section&id=Operating%20Review) The operating review covers 2020's key activities, focusing on safety performance, community investment, and greenhouse gas emissions, which totaled 1.89 million tonnes CO2e - At 2020 year-end, the company's Total Recordable Injury Frequency Rate (TRIFR) was **7.4**, outperforming the industry weighted average of **8.4**[93](index=93&type=chunk) - Total Scope 1 and 2 greenhouse gas emissions for the period ended June 30, 2020, were **1.89 million tonnes of CO2 equivalent**, a **3% change** from the prior year[95](index=95&type=chunk) [Operations](index=33&type=section&id=Operations) The company operates nine coal mines, exporting to Asia with ample port capacity, and holds brownfield expansion projects while remaining open to diversification into other energy projects - The company has ample infrastructure support, holding **30.0% and 27.0% stakes in PWCS and NCIG** at Port of Newcastle, respectively, with a combined port allocation capacity exceeding **54 million tonnes per annum**[97](index=97&type=chunk) - Potential growth projects include a Warkworth underground mine with a potential annual production of **5 million tonnes**, and Moolarben expansion approvals to increase run-of-mine annual production to **24 million tonnes**[98](index=98&type=chunk) [Corporate Activities and Dividends](index=33&type=section&id=Corporate%20Activities%20and%20Dividends) In 2020, the company acquired an additional 10% stake in Moolarben for AUD 300 million, regained control of Watagan, and paid a 2019 final dividend of AUD 280 million, but declared no 2020 dividends due to market conditions - The company paid a **final dividend of AUD 280 million** in April 2020 but declared no interim or final dividends for 2020 due to challenging market conditions[99](index=99&type=chunk) - A significant acquisition involved an **additional 10% equity in Moolarben for AUD 300 million**, increasing total ownership to **95%** and generating an accounting gain of **AUD 653 million**[100](index=100&type=chunk) - On December 16, 2020, the company regained accounting control of Watagan, with its financial results to be re-consolidated into the group's statements[101](index=101&type=chunk) [Directors' and Management Information](index=36&type=section&id=Directors'%20and%20Management%20Information) This section details the background, qualifications, and committee roles of current directors and management, including their 2020 meeting attendance records - The report details each director's membership and chairmanship in the Audit and Risk Management, Nomination and Remuneration, Health Safety Environment Community, and Strategic Development committees as of December 31, 2020[120](index=120&type=chunk) - The report discloses 2020 Board and committee meeting attendance, with **17 full Board meetings** held during the year[122](index=122&type=chunk) [Remuneration Report](index=42&type=section&id=Remuneration%20Report) [Remuneration Report Overview](index=44&type=section&id=Remuneration%20Report%20Overview) The Remuneration Report reviews 2020's challenges, noting reduced executive pay due to market impacts on profit, and outlines 2021 framework adjustments to enhance individual accountability - Executive remuneration decreased from 2019 due to challenging market conditions and unmet pre-tax profit targets, resulting in reduced Short-Term Incentive (STI) payouts[136](index=136&type=chunk) - The 2021 remuneration framework will introduce individual performance weighting for Short-Term Incentive outcomes to enhance individual accountability[137](index=137&type=chunk) - The executive leadership team underwent structural changes in 2020, with new appointments to key positions including CEO, Chairman of the Executive Committee, and CFO[135](index=135&type=chunk)[140](index=140&type=chunk) [Remuneration Framework and Structure](index=47&type=section&id=Remuneration%20Framework%20and%20Structure) The executive remuneration framework, comprising FAR, STI, and LTI, aims for market competitiveness and shareholder alignment, with STI based on a balanced scorecard and LTI on long-term performance targets Executive Remuneration Structure | Remuneration Component | Form | Purpose and Assessment Basis | | :--- | :--- | :--- | | **Fixed Annual Remuneration (FAR)** | Cash salary, superannuation, etc. | Attract and retain talent, reflect role responsibilities | | **Short-Term Incentive (STI)** | 50% Cash + 50% Deferred Equity | Reward achievement of annual financial, operational, and strategic objectives, based on a balanced scorecard | | **Long-Term Incentive (LTI)** | Performance Share Rights | Reward and retain talent influencing long-term company performance, based on 3-year relative EPS and cost targets | 2020 Short-Term Incentive (STI) Scorecard Weightings | Key Performance Indicator (KPI) | Weight | | :--- | :--- | | **Profitability** | 60% | | (PBT 30%, Cash Cost 20%, ROM Tonnes 10%) | | | **Health & Safety** | 15% | | **Strategic Objectives** | 15% | | **Environment** | 10% | [Remuneration and Company Performance Link](index=50&type=section&id=Remuneration%20and%20Company%20Performance%20Link) This section details the link between remuneration and performance, noting that despite unmet profit targets, strong performance in other areas led to a 58.9% STI payout and partial LTI vesting - 2020 Short-Term Incentive (STI) results: Despite unmet pre-tax profit targets, strong performance in cost control, safety, and strategic objectives led to an overall scorecard achievement of **117.8%**, with key management personnel receiving **58.9%** of their maximum incentive opportunity[167](index=167&type=chunk)[168](index=168&type=chunk) - 2018 Long-Term Incentive (LTI) vesting forecast: The **60% of awards linked to EPS** are not expected to vest, while the **40% linked to cost targets** are expected to vest **100%**[170](index=170&type=chunk) [Statutory Remuneration Disclosure](index=53&type=section&id=Statutory%20Remuneration%20Disclosure) This section provides statutory disclosure of executive and non-executive director remuneration, detailing compensation components, fee structures, and changes in equity holdings 2020 Total Remuneration for Key Management Personnel | Name | Position | 2020 Total Remuneration (AUD) | | :--- | :--- | :--- | | Zhang Ning | Chairman of Executive Committee | 957,470 | | David James Moult | Chief Executive Officer | 3,468,786 | | Su Ning | Chief Financial Officer | 894,992 | - The total fee cap for non-executive directors is **AUD 3.5 million per annum**, with **AUD 894,209** actually paid in 2020; non-executive directors nominated by major shareholders do not receive fees[179](index=179&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk) [Management Discussion and Analysis (MD&A)](index=55&type=section&id=Management%20Discussion%20and%20Analysis%20(MD%26A)) [Business Review](index=57&type=section&id=Business%20Review) The 2020 business review highlights a 26% drop in average coal selling prices due to global economic conditions, offset by a 7% increase in marketable production and reduced operating costs 2020 vs 2019 Production Comparison (Attributable Basis) | Coal Type | 2020 (million tonnes) | 2019 (million tonnes) | Change | | :--- | :--- | :--- | :--- | | Thermal Coal | 33.6 | 30.2 | +11% | | Metallurgical Coal | 5.7 | 6.7 | -15% | | **Total** | **39.3** | **36.9** | **+7%** | - The company's overall average mine-gate selling price decreased by **26% to AUD 82/tonne** due to global coal price declines, with thermal coal at **AUD 76/tonne** and metallurgical coal at **AUD 124/tonne**[192](index=192&type=chunk) - The COVID-19 pandemic significantly impacted coal prices, leading to a substantial decline in financial performance and cash flow, with mine-gate coal sales revenue decreasing by **AUD 881 million (-26%)**[199](index=199&type=chunk) [Financial Performance Review](index=60&type=section&id=Financial%20Performance%20Review) In 2020, the company reported a post-tax loss of AUD 1.04 billion, driven by reduced coal sales revenue and a AUD 1.383 billion non-cash loss from Watagan's re-consolidation, despite effective cost management 2020 Consolidated Statement of Profit or Loss Summary (million AUD) | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | 3,473 | 4,459 | -22% | | **Operating EBITDA** | 748 | 1,654 | -55% | | **Loss/Profit Before Income Tax** | (1,143) | 767 | -249% | | **Loss/Profit After Income Tax** | (1,040) | 719 | -249% | | **Basic Loss/Earnings Per Share (AUD cents)** | (78.8) | 54.5 | -245% | - The significant performance decline was primarily due to reduced revenue from falling coal prices and a **one-time non-cash loss of AUD 1.383 billion** from Watagan's re-consolidation[202](index=202&type=chunk) - The company achieved effective cost control, reducing cash operating costs per tonne of marketable coal (excluding royalties) from **AUD 64 in 2019 to AUD 59**[215](index=215&type=chunk) [Cash Flow Analysis](index=66&type=section&id=Cash%20Flow%20Analysis) In 2020, net operating cash inflow decreased by 61% to AUD 605 million, with net investing outflow of AUD 591 million and financing outflow of AUD 314 million, resulting in a net decrease of AUD 300 million in cash 2020 Cash Flow Summary (million AUD) | Cash Flow Type | 2020 (million AUD) | 2019 (million AUD) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 605 | 1,548 | | **Net Cash from Investing Activities** | (591) | (392) | | **Net Cash from Financing Activities** | (314) | (1,209) | | **Net Increase/(Decrease) in Cash** | (300) | (53) | [Financial Position and Liquidity](index=66&type=section&id=Financial%20Position%20and%20Liquidity) As of year-end 2020, total assets were AUD 11.055 billion, with net debt increasing to AUD 3.568 billion and gearing to 41% due to Watagan's re-consolidation 2020 Year-End Financial Position (million AUD) | Indicator | December 31, 2020 (million AUD) | December 31, 2019 (million AUD) | | :--- | :--- | :--- | | **Total Assets** | 11,055 | 11,093 | | **Total Liabilities** | 5,862 | 4,930 | | **Total Equity** | 5,193 | 6,163 | | **Net Debt** | 3,568 | 2,536 | | **Gearing Ratio** | 41% | 29% | - The gearing ratio increased from **29% to 41%**, primarily due to Watagan's re-consolidation leading to increased interest-bearing debt[234](index=234&type=chunk) [Significant Investments and Capital Expenditures](index=68&type=section&id=Significant%20Investments%20and%20Capital%20Expenditures) In 2020, capital expenditure was AUD 279 million, with a significant investment of AUD 300 million to acquire an additional 10% interest in Moolarben, while pursuing internal growth and external acquisitions - 2020 capital expenditure cash flow was **AUD 279 million**, primarily for investments in property, plant, and equipment[237](index=237&type=chunk) - The company completed the acquisition of a **10% interest in the Moolarben joint venture for AUD 300 million**, funded by operating cash flow and Hong Kong listing proceeds[237](index=237&type=chunk) [Financial Statements](index=54&type=section&id=Financial%20Statements) [Auditor's Independence Declaration](index=56&type=section&id=Auditor's%20Independence%20Declaration) The auditor, ShineWing Australia, declared no contraventions of independence requirements or professional ethical standards during the 2020 audit - Auditor ShineWing Australia confirmed its independence in the 2020 financial year audit, adhering to relevant regulations and professional ethical standards[190](index=190&type=chunk)[761](index=761&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=71&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The statement shows a swing from profit to a **AUD 1.04 billion post-tax loss** in 2020, driven by falling coal prices and a one-time non-cash loss 2020 Consolidated Statement of Profit or Loss Key Data (million AUD) | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 3,473 | 4,459 | | **Loss/Profit Before Income Tax** | (1,143) | 767 | | **Loss/Profit After Income Tax** | (1,040) | 719 | | **Total Comprehensive (Expense)/Income** | (688) | 841 | [Consolidated Statement of Financial Position](index=72&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The statement shows total assets of AUD 11.055 billion and total liabilities of AUD 5.862 billion as of December 31, 2020, with total equity decreasing to AUD 5.193 billion 2020 Year-End Consolidated Statement of Financial Position Key Data (million AUD) | Indicator | December 31, 2020 (million AUD) | December 31, 2019 (million AUD) | | :--- | :--- | :--- | | **Total Assets** | 11,055 | 11,093 | | **Total Liabilities** | 5,862 | 4,930 | | **Net Assets** | 5,193 | 6,163 | [Consolidated Statement of Changes in Equity](index=73&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) The statement details changes in shareholders' equity, which decreased from AUD 6.163 billion to AUD 5.193 billion due to comprehensive expenses and dividends - Shareholders' equity decreased from **AUD 6.163 billion** at year-start to **AUD 5.193 billion** at year-end, primarily due to **AUD 688 million in total comprehensive expense** and **AUD 280 million in dividends paid**[243](index=243&type=chunk)[814](index=814&type=chunk) [Consolidated Statement of Cash Flows](index=74&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The statement summarizes 2020 cash flows, with net operating inflow of AUD 605 million, net investing outflow of AUD 591 million, and net financing outflow of AUD 314 million, resulting in a net cash decrease of AUD 300 million 2020 Consolidated Statement of Cash Flows Summary (million AUD) | Item | 2020 (million AUD) | | :--- | :--- | | **Net Cash Inflow from Operating Activities** | 605 | | **Net Cash Outflow from Investing Activities** | (591) | | **Net Cash Outflow from Financing Activities** | (314) | | **Net Decrease in Cash and Cash Equivalents** | (300) | | **Year-End Cash and Cash Equivalents** | 637 | [Notes to the Consolidated Financial Statements](index=75&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations and supplementary information on the basis of preparation, accounting policies, estimates, performance, assets, liabilities, capital structure, and group structure [B. Performance](index=77&type=section&id=B.%20Performance) This section details performance, including segmental data, revenue composition by market and product, expenses, and remuneration for key management and highest-paid employees 2020 Coal Sales Revenue by Region (million AUD) | Major Regional Market | 2020 Revenue (million AUD) | 2019 Revenue (million AUD) | | :--- | :--- | :--- | | Japan | 683 | 1,139 | | Singapore | 610 | 465 | | China | 455 | 683 | | South Korea | 413 | 546 | | Taiwan | 385 | 533 | | Australia | 338 | 453 | [C. Operating Assets and Liabilities](index=86&type=section&id=C.%20Operating%20Assets%20and%20Liabilities) This section details major operating assets and liabilities, including property, plant, and equipment, mining rights, and intangible assets, with a focus on impairment testing assumptions for future coal prices and exchange rates - Key assumptions for long-term asset impairment testing include: long-term thermal coal prices of **USD 57-103/tonne**, metallurgical coal prices of **USD 103-177/tonne**, an **AUD/USD exchange rate of 0.75**, and a **10.5% post-tax discount rate**[300](index=300&type=chunk)[302](index=302&type=chunk) [D. Capital Structure and Financing](index=101&type=section&id=D.%20Capital%20Structure%20and%20Financing) This section details capital structure, financing activities, and financial risk management, covering interest-bearing debt, equity, dividends, and analysis of market, credit, and liquidity risks 2020 Year-End Interest-Bearing Debt Composition (million AUD) | Debt Type | Amount (million AUD) | | :--- | :--- | | Bank Loans | 2,019 | | Bonds | 1,006 | | Unsecured Loans from Related Parties | 1,059 | | Lease Liabilities | 121 | | **Total** | **4,205** | [E. Group Structure](index=117&type=section&id=E.%20Group%20Structure) This section outlines the group structure and significant 2020 changes, including acquiring an additional 10% Moolarben interest and re-consolidating Watagan, which resulted in a AUD 1.383 billion non-cash loss - After acquiring an **additional 10% interest in Moolarben**, the company gained accounting control and recognized a **bargain purchase gain of AUD 653 million**[414](index=414&type=chunk)[416](index=416&type=chunk) - The re-consolidation of the Watagan Group on December 16, 2020, resulted in a **one-time non-cash loss of AUD 1.383 billion** from this business combination[419](index=419&type=chunk)[420](index=420&type=chunk) [Directors' Declaration](index=142&type=section&id=Directors'%20Declaration) The Board declares the 2020 financial statements comply with regulations, fairly reflect the Group's position, and confirms the company's ability to pay debts, supported by CEO and CFO declarations - The Board confirms the financial statements are true and fair, and the company has the ability to continue as a going concern[483](index=483&type=chunk) [Audit and Governance](index=141&type=section&id=Audit%20and%20Governance) [Independent Auditor's Report](index=143&type=section&id=Independent%20Auditor's%20Report) Independent auditor ShineWing Australia issued an unmodified opinion on the 2020 financial statements, identifying key audit matters including Watagan's re-consolidation, Moolarben acquisition, and long-term asset recoverability - The auditor issued an **unmodified audit opinion** on the 2020 financial statements[485](index=485&type=chunk) - Key audit matters include Watagan re-consolidation, acquisition of additional Moolarben equity, long-term asset recoverability, valuation of interest in Zhongshan Coal Mine, and tax treatments[486](index=486&type=chunk)[487](index=487&type=chunk)[488](index=488&type=chunk) [Corporate Governance Report](index=149&type=section&id=Corporate%20Governance%20Report) This report outlines the corporate governance framework, detailing Board structure, independence, committee roles, risk management, and other key practices, noting non-compliance with ASX independence recommendations - The Board comprises **9 directors**, including **3 independent non-executive directors**; the Chairman and most members are not considered independent due to controlling shareholder nominations, not fully complying with ASX Recommendations 2.4 and 2.5[493](index=493&type=chunk)[501](index=501&type=chunk) - The company has four standing Board committees: Audit and Risk Management, Health Safety Environment Community, Nomination and Remuneration, and Strategic Development, to assist the Board[504](index=504&type=chunk) - The company has a comprehensive risk management framework, overseen by the Audit and Risk Management Committee, identifying significant operational, regulatory, environmental, geopolitical, and financial risks[516](index=516&type=chunk)[518](index=518&type=chunk) [Other Disclosures](index=169&type=section&id=Other%20Disclosures) [Related Party Transactions](index=171&type=section&id=Related%20Party%20Transactions) This section details 2020's ongoing related party transactions with controlling shareholders and associates, covering coal sales, purchases, and financing, confirming adherence to normal commercial terms 2020 Overview of Major Related Party Transactions | Transaction Type | Counterparty | Annual Cap (USD) | Actual Transaction Amount (USD) | | :--- | :--- | :--- | :--- | | **Coal Sales** | Yankuang Group | 250 million | Approx. 53.2 million | | **Coal Sales** | Yankuang International Trade | 93 million | Approx. 13.7 million | | **Coal Sales** | Glencore | 350 million | Approx. 142.2 million | | **Coal Sales** | POSCO | 600 million | Approx. 163 million | | **Coal Purchases** | Yankuang Group | 65 million | Approx. 3.5 million | | **Coal Purchases** | Glencore | 350 million | Approx. 62.5 million | [Coal Reserves and Resources](index=178&type=section&id=Coal%20Reserves%20and%20Resources) The report discloses 2020 JORC-compliant coal resources and reserves, showing attributable total resources of 6.884 billion tonnes and marketable reserves of 833 million tonnes, with slight decreases from the prior year Coal Reserves and Resources Changes (Attributable Basis) | Item | 2020 (million tonnes) | 2019 (million tonnes) | Change | | :--- | :--- | :--- | :--- | | **Coal Resources** | 6,884 | 6,911 | -0.4% | | **Recoverable Reserves** | 1,154 | 1,196 | -3.5% | | **Marketable Reserves** | 833 | 872 | -4.5% | [Shareholding Data](index=182&type=section&id=Shareholding%20Data) This section provides shareholding structure information as of March 3, 2020, showing controlling shareholder Yankuang Energy holding 62.26% and the top three shareholders collectively holding over 84% - As of March 3, 2020, the major shareholder was Yankuang Energy Group Co., Ltd., with a **62.26% stake**; the top 20 shareholders collectively held approximately **99.32%** of the shares[561](index=561&type=chunk)