兖煤澳大利亚(03668) - 2025 - 中期业绩

Half-Year Performance Announcement Summary The Board of Yancoal Australia Ltd. announced its half-year results for the period ended June 30, 2025, declaring an interim cash dividend of approximately 82 million AUD (0.0620 AUD per share), expected to be paid on September 19, 2025 Interim Distribution The Board declared an interim cash dividend of approximately 82 million AUD, or 0.0620 AUD per share, for the half-year ended June 30, 2025, which is fully franked 2025 Half-Year Interim Dividend | Metric | Amount | | :--- | :--- | | Interim Cash Dividend | 82 million AUD | | Dividend Per Share | 0.0620 AUD/share | | Exchange Rate (1 AUD to HKD) | 5.1030 | | Record Date | September 5, 2025 | | Payment Date | September 19, 2025 | - The interim dividend is fully franked income from Australia, with tax implications varying based on individual shareholder circumstances[4] Appendix 4D - Key Financial Data Appendix 4D provides a key financial data overview for the half-year ended June 30, 2025, showing significant year-on-year declines in revenue, profit before tax, and net profit, alongside an increase in net tangible assets per share Performance Announcement For the half-year ended June 30, 2025, the company's ordinary operating revenue was 2,675 million AUD, a 15% year-on-year decrease; profit before income tax was 239 million AUD, a 58% decrease; and net profit after income tax attributable to shareholders was 163 million AUD, a 61% decrease 2025 Half-Year Performance Overview (million AUD) | Metric | June 30, 2025 | June 30, 2024 | Change Percentage | | :--- | :--- | :--- | :--- | | Ordinary Operating Revenue | 2,675 | 3,138 | (15%) | | Profit Before Income Tax | 239 | 571 | (58%) | | Net Profit After Income Tax Attributable to Shareholders | 163 | 420 | (61%) | Earnings Per Share As of June 30, 2025, both basic and diluted earnings per share were 12.4 AUD cents, representing a 61% year-on-year decrease 2025 Half-Year Earnings Per Share (AUD cents) | Metric | June 30, 2025 | June 30, 2024 | Change Percentage | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 12.4 | 31.9 | (61%) | | Diluted Earnings Per Share | 12.4 | 31.8 | (61%) | Net Tangible Assets Per Security As of June 30, 2025, net tangible assets per share were 6.57 AUD, a 4% year-on-year increase Net Tangible Assets Per Share (AUD) | Metric | June 30, 2025 | June 30, 2024 | Change Percentage | | :--- | :--- | :--- | :--- | | Net Tangible Assets Per Share | 6.57 | 6.29 | 4% | Profit Distribution The 2024 final dividend of 52.00 AUD cents per share, totaling 687 million AUD, was paid in April 2025, and the Board declared a 2025 interim dividend of 0.0620 AUD per share, totaling 82 million AUD, on August 19, 2025 Ordinary Share Profit Distribution (million AUD) | Dividend Type | AUD Cents Per Share | Total (million AUD) | | :--- | :--- | :--- | | 2024 Final Dividend (Paid April 2025) | 52.00 | 687 | | 2023 Final Dividend (Paid April 2024) | — | 429 | | Total Distribution | | 687 | - The Board declared a 2025 interim dividend of 82 million AUD, or 0.0620 AUD/share (fully franked), with a record date of September 5, 2025, and a payment date of September 19, 2025[12] Details of Associates and Joint Venture Entities The company holds interests in several joint ventures, with declining profit contributions from Moolarben, Warkworth, Syntech, and Hunter Valley joint ventures, while Middlemount Joint Venture recorded a loss, and Port Waratah Coal Services Pty Ltd saw increased profit contribution Profit After Income Tax Contribution from Joint Venture Entities (million AUD) | Joint Venture | Ownership Interest (June 30, 2025) | Profit / (Loss) Contribution After Income Tax (June 30, 2025) | | :--- | :--- | :--- | | Moolarben Joint Venture | 95% | 129 | | Warkworth Joint Venture | 84.472% | 76 | | Syntech Joint Venture | 80% | 24 | | Hunter Valley Joint Venture | 51% | 40 | | Middlemount Joint Venture | 49.9997% | (15) | Profit After Income Tax Contribution from Associate Entities (million AUD) | Associate Entity | Ownership Interest (June 30, 2025) | Profit Contribution After Income Tax (June 30, 2025) | | :--- | :--- | :--- | | Port Waratah Coal Services Pty Ltd | 30% | 16 | Directors' Report The Directors' Report outlines Yancoal Australia's operational and financial performance for the half-year ended June 30, 2025, covering board changes, company activities, coal market conditions, dividend policy, corporate governance compliance, directors' and major shareholders' interests, and Audit and Risk Management Committee review Board Members and Company Activities Mr. Ru Gang serves as Chairman, and Mr. Yue Ning is the Executive Director and Acting CEO, with other non-executive and independent non-executive directors listed; the company did not purchase, sell, or redeem listed securities, but an employee share trust holds company securities through market transactions - Mr. Ru Gang serves as Chairman, and Mr. Yue Ning serves as Executive Director and Acting Chief Executive Officer[17][23][27] - During the reporting period, neither Yancoal Australia nor any of its subsidiaries purchased, sold, or redeemed Yancoal Australia's listed securities[19] Material Changes in State of Affairs During the reporting period, coal price indices declined due to ample supply and weak demand, experiencing short-term fluctuations influenced by geopolitical events and global trade tariffs, while Yancoal Australia's saleable coal production increased by 15% (on a 100% basis) compared to the first half of 2024 - During the reporting period, coal price indices declined due to ample supply and weak demand, with short-term fluctuations influenced by Middle East geopolitical events and the implementation of global trade tariffs[20] - Yancoal Australia's saleable coal production increased by 15% (on a 100% basis) in the first half of 2025 compared to the first half of 2024[20] Dividends and Dividend Policy The company's dividend policy stipulates that, subject to applicable laws, cash needs for business continuity, directors' duties, and shareholder approval, interim or final dividends may be distributed, typically not less than 50% of net profit after tax (before abnormal items) or free cash flow (before abnormal items) - The company's dividend policy stipulates a distribution of not less than 50% of net profit after tax (before abnormal items) or 50% of free cash flow (before abnormal items), whichever is higher[23] - If directors deem it necessary for prudent financial management, an interim and/or final dividend of not less than 25% of net profit after tax (before abnormal items) will be distributed in a specific financial year[23] Compliance with Corporate Governance Code The company has adopted the provisions of Appendix C1 "Corporate Governance Code" of the Hong Kong Listing Rules and believes it has complied with the code provisions during the reporting period - The company has adopted the provisions of Appendix C1 "Corporate Governance Code" of the Hong Kong Listing Rules and believes it has complied with the code provisions during the reporting period[22] Interests and Positions in Shares This section discloses the share interests of the company's directors, CEO, and major shareholders, including Yanzhou Coal Mining Company Limited and Shandong Energy Group Co., Ltd., in the company and its associated corporations, emphasizing the company's strict share trading policy Directors' and CEO's Interests in Company Shares (June 30, 2025) | Name of Chief Executive or Director | Number of Shares and Related Shares | Nature of Interest | Approximate Percentage | | :--- | :--- | :--- | :--- | | Yue Ning (Director) | 75,361 | Beneficial Owner | 0.00571 % | | Gregory James Fletcher (Director) | 2,100 | Beneficial Owner | 0.00016 % | | Debra Anne Bakker (Director) | 9,000 | Beneficial Owner | 0.00068 % | | David James Moult (CEO) | 5,683,998 | Beneficial Owner | 0.07262 % | Major Shareholders' Interests in Company Shares (June 30, 2025) | Shareholder Name | Capacity | Number of Shares Held or Interested | Approximate Percentage (%) | | :--- | :--- | :--- | :--- | | Yanzhou Coal Mining Company Limited | Beneficial Owner | 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 Owner | 101,601,082 | 7.69 | - The company's share trading policy prohibits directors, officers, and other relevant employees from trading company securities during blackout periods and when in possession of "inside information"[26] Audit and Risk Management Committee Review The Audit and Risk Management Committee has reviewed the company's and its subsidiaries' financial statements for the half-year ended June 30, 2025, deeming them prepared in compliance with applicable accounting standards and requirements, with the company's auditor, SW Audit, also reviewing the interim financial statements - The Audit and Risk Management Committee has reviewed the half-year financial statements and believes they are prepared in compliance with applicable accounting standards and requirements[29] - The company's auditor, SW Audit, has reviewed the financial report in accordance with Review Engagement Standard 2410[29] Auditor's Independence Declaration In accordance with Section 307C of the Corporations Act 2001, the lead auditor declares no contraventions of auditor independence requirements or applicable professional conduct rules for the half-year ended June 30, 2025 - The lead auditor declares no contraventions of the Corporations Act 2001's auditor independence requirements for the half-year ended June 30, 2025[34][36] - There were no contraventions of any applicable code of professional conduct in relation to this review[36] Business Overview and Operational Performance Yancoal Australia, a leading low-cost coal producer with a diverse portfolio of world-class assets, primarily produces thermal and metallurgical coal, actively responding to generally declining coal price indices through product optimization and market expansion, while achieving significant growth in saleable coal production, reduced cash operating costs, and continued focus on health, safety, sustainability, and environmental management Coal Business and Market Analysis Yancoal Australia operates eight coal mines in Australia, producing approximately 70 million tonnes of run-of-mine coal and 55 million tonnes of saleable coal annually, primarily serving customers across the Asia-Pacific region; during the reporting period, all coal price indices declined due to weaker demand and ample supply, but the company actively responded by optimizing products and expanding markets - Yancoal Australia operates eight coal mines in Australia, capable of producing approximately 70 million tonnes of run-of-mine coal and 55 million tonnes of saleable coal annually[37] - For the half-year ended June 30, 2025, revenue from customers in China, Japan, Taiwan, and South Korea accounted for approximately 82% of total coal sales revenue (June 30, 2024: 89%)[37] - During the reporting period, all coal price indices declined from previous levels due to a warm winter in the Northern Hemisphere leading to weaker demand, a slowdown in China's real estate market curbing steel product demand, strong domestic coal supply in China, concerns over tariff impacts, and ample supply from all exporting countries[39] Operational Performance and Cost Control In the first half of 2025, the Group's overall average realized price for self-produced coal decreased by 15% to 149 AUD/tonne; despite heavy rainfall in New South Wales, saleable coal production increased by 15% year-on-year, while attributable saleable coal sales decreased by 2%; the company's "Key Focus" program reduced the average cash operating cost per tonne of product (excluding government royalties) from 101 AUD/tonne to 93 AUD/tonne Self-Produced Coal Average Realized Price (AUD/tonne) | Metric | 2025 Half-Year | 2024 Half-Year | Change (%) | | :--- | :--- | :--- | :--- | | Overall Average Realized Price | 149 | 176 | (15%) | - Attributable saleable coal production in the first half of 2025 increased by 11% compared to the first half of 2024, while attributable saleable coal sales decreased by 2% over the same period[41] - The Group's overall average cash operating cost per tonne of product (excluding government royalties) decreased from 101 AUD/tonne in the first half of 2024 to 93 AUD/tonne in the first half of 2025, primarily due to increased saleable coal production[43] Run-of-Mine and Saleable Coal Production On a 100% basis, run-of-mine coal production increased by 16% from 27.9 million tonnes in the first half of 2024 to 32.2 million tonnes in the first half of 2025, and saleable coal production increased by 15% from 21.6 million tonnes to 24.8 million tonnes, mainly driven by increased output from key mines such as Moolarben, Warkworth, and Hunter Valley Run-of-Mine Production (million tonnes, 100% basis) | Mine | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Moolarben | 11.2 | 10.9 | 3% | | Warkworth | 7.9 | 7.6 | 4% | | Hunter Valley | 9.0 | 5.0 | 79% | | Ashton | 1.5 | 1.0 | 52% | | Duralie | 0.8 | 1.4 | (42%) | | Stratford | — | 0.1 | (100%) | | Middlemount | 1.8 | 1.9 | (3%) | | Total | 32.2 | 27.9 | 16% | Saleable Coal Production (million tonnes, 100% basis) | Mine | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Moolarben | 9.8 | 9.5 | 3% | | Warkworth | 5.5 | 4.7 | 18% | | Hunter Valley | 6.6 | 4.8 | 38% | | Ashton | 1.3 | 0.8 | 57% | | Duralie | 0.4 | 0.6 | (42%) | | Stratford | — | 0.1 | (100%) | | Middlemount | 1.3 | 1.1 | 17% | | Total | 24.8 | 21.6 | 15% | Attributable Saleable Coal Production Trends The Group's attributable saleable coal production increased by 11% from 17.6 million tonnes in the first half of 2024 to 19.5 million tonnes in the first half of 2025, with thermal coal production increasing by 5% and metallurgical coal production significantly increasing by 47%; the company expects to achieve the upper end of its full-year attributable saleable coal production guidance range of 35 million to 39 million tonnes Attributable Saleable Coal Production (million tonnes) | Coal Type | 2025 Half-Year | 2024 Half-Year | Change (%) | | :--- | :--- | :--- | :--- | | Thermal Coal | 15.7 | 15.0 | 5% | | Metallurgical Coal | 3.8 | 2.6 | 47% | | Total | 19.5 | 17.6 | 11% | - The Group's current full-year attributable saleable coal production guidance range is 35 million to 39 million tonnes[52] Health and Safety The company is committed to achieving zero harm and continuously implements critical hazard and control measures, with a 12-month rolling TRIFR of 6.3 as of June 30, 2025, which is below the comparable industry weighted average of 7.9, and continues to advance its mental health program - As of June 30, 2025, the company's 12-month rolling TRIFR was 6.3, a decrease from 6.7 on December 31, 2024, and below the comparable industry weighted average of 7.9[56] - The third and fourth phases of the four-year, four-stage mental health program are ongoing[56] Sustainability and Environmental Management The company adheres to its P4 Sustainability Strategy and actively responds to Australia's mandatory climate disclosure regime; in FY2024, five facilities exceeded Scope 1 baselines, while Moolarben generated Safeguard Mechanism credits; the company continues to research emissions reduction technologies, advances potential pumped hydro and solar facilities at the Stratford mine, implements environmental compliance systems, and promotes Indigenous cultural heritage management standards Climate-Related Disclosures and Safeguard Mechanism Australia's mandatory climate disclosure regime became effective on January 1, 2025, applying to Tier 1 companies including Yancoal Australia, with Ashton, Hunter Valley, Middlemount, Warkworth, and Duralie mines exceeding their Scope 1 baselines in FY2024, while Moolarben generated Safeguard Mechanism credits - Australia's mandatory climate disclosure regime became effective on January 1, 2025, with mandatory climate-related disclosure reporting applicable to financial years commencing on or after January 1, 2025, for Tier 1 companies including Yancoal Australia[57] - In FY2024, Ashton, Hunter Valley, Middlemount, Warkworth, and Duralie mines exceeded their Scope 1 baselines, while Moolarben's Scope 1 emissions were below its baseline, resulting in the generation of Safeguard Mechanism credits[60] Emissions Reduction and Environmental Protection The company acknowledges its role in reducing operational emissions and supporting research into low-emission technologies, recognizing the risks and opportunities of transitioning to a low-carbon economy; it is investigating potential pumped hydro and solar facilities at the Stratford mine, implementing environmental compliance systems, and promoting Indigenous cultural heritage management standards - Yancoal Australia is investigating a potential pumped hydro and solar facility at the Stratford mine, which, if developed, could support the repurposing of parts of the mine site after mining ceases[61] - Yancoal Australia implements and continuously reviews a set of environmental compliance systems, processes, and practices, which are regularly audited by third parties[67] - Yancoal Australia continues to implement company-level Indigenous cultural heritage management standards, ensuring control measures are applied across all mine sites to minimize the impact of mining on Indigenous cultural heritage[67] Social and Governance The company actively contributes to communities through its Community Support Program and ensures community engagement, has established a Code of Conduct and Anti-Bribery and Sanctions Policy, submits annual statements under the Modern Slavery Act 2018, and the Board is responsible for overseeing and approving risk management and financial investment decisions, continuously improving water management infrastructure to address extreme weather - Yancoal Australia is advancing the launch of its 2025 Community Support Program, which provides funding for environmental, educational, arts, cultural, and community initiatives[68] - The Board holds ultimate responsibility for the oversight and approval of risk management and financial investment decisions[69] - The company has significantly mitigated the impact of adverse weather events during the period by constructing and maintaining water management infrastructure at its mine sites[70] Financial Performance Review For the half-year ended June 30, 2025, Yancoal Australia's financial performance significantly declined, with profit after tax decreasing by 61% year-on-year to 163 million AUD, primarily due to a 15% revenue decrease and a 40% reduction in operating EBITDA; the average coal sales price fell by 15%, and sales volume decreased by 2%, though purchased coal sales revenue increased; production costs saw an 8 AUD/tonne reduction in cash operating costs per tonne of saleable coal to 93 AUD/tonne, but other operating expenses rose due to foreign exchange losses and increased Safeguard Mechanism expenses; non-operating items had a net positive impact of 8 million AUD on profit before tax Profit Attributable to Equity Holders of the Company Profit after income tax decreased by 61% from 420 million AUD in the first half of 2024 to 163 million AUD in the first half of 2025, fully attributable to Yancoal Australia shareholders, with non-operating items having a net positive impact of 8 million AUD on profit before tax in the first half of 2025 - Profit after income tax decreased by 61% from 420 million AUD in the first half of 2024 to 163 million AUD in the first half of 2025[76] - In the first half of 2025, profit attributable to Yancoal Australia shareholders of 163 million AUD was impacted by several non-operating items, with a total net positive impact of 8 million AUD on profit before tax[76] Operating Performance Overview This section analyzes self-produced coal sales, saleable coal production, and self-produced coal revenue for mines including Moolarben, Warkworth, Hunter Valley, Duralie, Ashton, and Stratford/Duralie, with Middlemount's performance accounted for as an equity-accounted investment in the income statement; the company has signed an agreement to acquire an additional 3.75% interest in the Moolarben Joint Venture and exited the Donaldson Coal Joint Venture - The company has signed a binding agreement to acquire an additional 3.75% interest in the Moolarben Joint Venture, increasing the Group's interest to 98.75%[77] - The company signed an agreement with The Bloomfield Group to exit its non-producing and non-core Donaldson Coal Joint Venture, with no cash consideration for the transaction[78] Revenue Analysis Total revenue decreased by 15% from 3.099 billion AUD in the first half of 2024 to 2.623 billion AUD in the first half of 2025, primarily due to a 16% decline in coal sales revenue; the overall average realized price for self-produced coal decreased by 15% to 149 AUD/tonne, with thermal and metallurgical coal average realized prices falling by 12% and 35% respectively; self-produced coal sales volume decreased by 2%, but purchased coal sales revenue grew by 55%; sales revenue to Japan increased, while sales to China, Taiwan, and South Korea decreased, and sales to Vietnam and Europe increased Revenue Composition (million AUD) | Revenue Source | 2025 Half-Year | 2024 Half-Year | Change (%) | | :--- | :--- | :--- | :--- | | Self-Produced Coal Sales | 2,479 | 2,980 | (17%) | | Purchased Coal Sales | 73 | 47 | 55% | | Other | 6 | 3 | 100% | | Total Coal Sales | 2,558 | 3,030 | (16%) | | Freight | 39 | 44 | (11%) | | Royalty Income | 13 | 12 | 8% | | Other | 13 | 13 | 0% | | Total Revenue | 2,623 | 3,099 | (15%) | Self-Produced Coal Sales Data (AUD/tonne, million tonnes) | Metric | 2025 Half-Year | 2024 Half-Year | Change (%) | | :--- | :--- | :--- | :--- | | Thermal Coal | | | | | Average Realized Price | 138 | 156 | (12%) | | Sales Volume | 13.8 | 14.9 | (7%) | | Total Revenue | 1,903 | 2,332 | (18%) | | Metallurgical Coal | | | | | Average Realized Price | 207 | 319 | (35%) | | Sales Volume | 2.8 | 2.0 | 39% | | Total Revenue | 576 | 648 | (11%) | | Total Coal | | | | | Average Realized Price | 149 | 176 | (15%) | | Sales Volume | 16.6 | 16.9 | (2%) | | Total Revenue | 2,479 | 2,980 | (17%) | - Sales revenue to Japan increased from 23% of total coal sales revenue in the first half of 2024 to 30% in the first half of 2025, primarily due to increased sales volume and a higher proportion of metallurgical coal sales during the reporting period[86] Operating EBITDA and Margin Operating EBITDA decreased by 40% from 990 million AUD in the first half of 2024 to 595 million AUD in the first half of 2025, mainly due to reduced revenue, with the operating EBITDA margin decreasing from 32% to 23% - Operating EBITDA decreased by 40% from 990 million AUD in the first half of 2024 to 595 million AUD in the first half of 2025[87] - The operating EBITDA margin as a percentage of operating revenue decreased from 32% in the first half of 2024 to 23% in the first half of 2025[87] Other Income Other income decreased from 51 million AUD in the first half of 2024 to 5 million AUD in the first half of 2025, primarily due to a net foreign exchange gain of 50 million AUD recognized in the first half of 2024, whereas the first half of 2025 saw a net foreign exchange loss of 30 million AUD due to AUD appreciation, recorded in other operating expenses Other Income (million AUD) | Item | 2025 Half-Year | 2024 Half-Year | Change (%) | | :--- | :--- | :--- | :--- | | Net Foreign Exchange Gain | — | 50 | (100%) | | Miscellaneous Income | 5 | 1 | 400% | | Total | 5 | 51 | (90%) | - In the first half of 2025, AUD appreciation resulted in a net foreign exchange loss of 30 million AUD, recorded in other operating expenses[90] Production Cost Analysis The Group's cash operating cost per tonne of saleable coal (excluding capitalized overburden removal) decreased by 8 AUD/tonne from 101 AUD/tonne in the first half of 2024 to 93 AUD/tonne in the first half of 2025, primarily due to increased saleable coal production and portfolio improvements, partially offset by ongoing inflationary cost pressures Cash Operating Cost Per Tonne of Saleable Coal (AUD/tonne, excluding royalties) | Cost Item | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Raw Materials and Consumables Used | 32 | 34 | | Employee Benefits | 22 | 23 | | Transport | 19 | 22 | | Outsourced Services and Plant Hire | 15 | 17 | | Other Operating Expenses | 5 | 5 | | Total Cash Operating Cost | 93 | 101 | - The Group's cash operating cost per tonne of saleable coal (excluding capitalized overburden removal) decreased by 8 AUD/tonne from 101 AUD/tonne in the first half of 2024 to 93 AUD/tonne in the first half of 2025[93] Raw Materials and Consumables Used Raw materials and consumables used increased by 3% from 585 million AUD in the first half of 2024 to 604 million AUD in the first half of 2025, primarily due to an 11% increase in attributable saleable coal production, partially offset by efficiency improvements and portfolio optimization, leading to a decrease in raw materials and consumables used per tonne of saleable coal from 34 AUD to 32 AUD over the same period - Raw materials and consumables used increased by 3% from 585 million AUD in the first half of 2024 to 604 million AUD in the first half of 2025[97] - Raw materials and consumables used per tonne of saleable coal decreased from 34 AUD to 32 AUD over the same period[97] Employee Benefits Employee benefits expenses increased by 2% from 401 million AUD in the first half of 2024 to 409 million AUD in the first half of 2025, primarily due to wage and salary increases, additional hires, increased share-based payments, and higher statutory superannuation contributions, partially offset by improved production efficiency and reduced workers' compensation claims; employee benefits per tonne of saleable coal decreased from 23 AUD to 22 AUD - Employee benefits expenses increased by 2% from 401 million AUD in the first half of 2024 to 409 million AUD in the first half of 2025[98] - Employee benefits per tonne of saleable coal decreased from 23 AUD to 22 AUD over the same period[98] Transport Transport costs decreased by 2% from 412 million AUD in the first half of 2024 to 402 million AUD in the first half of 2025, primarily due to changes in contracted volumes for long-term take-or-pay rail and port arrangements and price increases, largely offset by reduced coal price-linked charges; transport costs per tonne of saleable coal decreased from 22 AUD to 19 AUD - Transport costs decreased by 2% from 412 million AUD in the first half of 2024 to 402 million AUD in the first half of 2025[99] - Transport costs per tonne of saleable coal decreased from 22 AUD to 19 AUD over the same period[99] Outsourced Services and Plant Hire Outsourced services and plant hire expenses decreased by 1% from 295 million AUD in the first half of 2024 to 292 million AUD in the first half of 2025, primarily due to an 11 million AUD reduction in marketing fees and sales commissions driven by lower coal prices; outsourced services and plant hire costs per tonne of saleable coal decreased from 17 AUD to 15 AUD - Outsourced services and plant hire expenses decreased by 1% from 295 million AUD in the first half of 2024 to 292 million AUD in the first half of 2025[100] - Outsourced services and plant hire costs per tonne of saleable coal decreased from 17 AUD to 15 AUD over the same period[100] Government Royalties Government royalties expenses slightly increased from 261 million AUD in the first half of 2024 to 262 million AUD in the first half of 2025, as a 17% decrease in self-produced coal sales revenue was offset by the New South Wales government's 2.6% increase in coal export royalties; government royalties per tonne of self-produced coal sold increased from 15 AUD to 16 AUD - Government royalties expenses slightly increased from 261 million AUD in the first half of 2024 to 262 million AUD in the first half of 2025[101] - The New South Wales government increased coal export royalties by 2.6% effective July 1, 2024[101] Purchased Coal Purchased coal decreased by 38% from 102 million AUD in the first half of 2024 to 63 million AUD in the first half of 2025, primarily due to a 17% decline in average coal prices and higher-than-target deliveries from the company's mines, reducing the need to purchase coal to fulfill contractual commitments - Purchased coal decreased by 38% from 102 million AUD in the first half of 2024 to 63 million AUD in the first half of 2025[102] - This was primarily due to a 17% decrease in average coal prices compared to the first half of 2024, and higher-than-target deliveries from our mines, reducing the need to purchase coal to fulfill contractual commitments[102] Other Operating Expenses Other operating expenses increased by 33% from 98 million AUD in the first half of 2024 to 130 million AUD in the first half of 2025, primarily including a net foreign exchange loss of 30 million AUD due to AUD appreciation and a 12 million AUD increase in Safeguard Mechanism expenses - Other operating expenses increased by 33% from 98 million AUD in the first half of 2024 to 130 million AUD in the first half of 2025[103] - This includes a net foreign exchange loss of 30 million AUD recognized during the reporting period due to AUD appreciation (first half of 2024: net gain of 52 million AUD recorded in other income) and a 12 million AUD increase in Safeguard Mechanism expenses[103] Share of Profit from Equity Accounted Investments, Net of Tax Share of profit from equity accounted investments, net of tax, decreased from 4 million AUD in the first half of 2024 to 1 million AUD in the first half of 2025, primarily due to a decline in the profit after tax from the Middlemount Joint Venture, partially offset by an increase in the profit after tax from the Group's 30% interest in Port Waratah Coal Services - Share of profit from equity accounted investments, net of tax, decreased from 4 million AUD in the first half of 2024 to 1 million AUD in the first half of 2025[104] - This was primarily due to a decline in the profit after tax from the Middlemount Joint Venture, partially offset by an increase in the profit after tax from the Group's 30% interest in Port Waratah Coal Services[104] Depreciation and Amortisation Depreciation and amortisation expenses decreased by 4% from 400 million AUD in the first half of 2024 to 383 million AUD in the first half of 2025, including the impact of Stratford ceasing mining activities in the first half of 2024; depreciation and amortisation costs per tonne of saleable coal decreased from 24 AUD to 20 AUD over the same period - Depreciation and amortisation expenses decreased by 4% from 400 million AUD in the first half of 2024 to 383 million AUD in the first half of 2025[105] - Depreciation and amortisation costs per tonne of saleable coal decreased from 24 AUD to 20 AUD over the same period[105] Operating EBIT and Margin Operating EBIT decreased by 64% from 590 million AUD in the first half of 2024 to 212 million AUD in the first half of 2025, primarily due to a reduction in operating EBITDA, with the operating EBIT margin as a percentage of operating revenue declining from 19% to 8% - Operating EBIT decreased by 64% from 590 million AUD in the first half of 2024 to 212 million AUD in the first half of 2025[106] - The operating EBIT margin as a percentage of operating revenue decreased from 19% in the first half of 2024 to 8% in the first half of 2025[106] Net Finance (Costs)/Income Net finance income increased by 111% from 9 million AUD in the first half of 2024 to 19 million AUD in the first half of 2025; interest expenses and bank fees and charges increased by 10% to 33 million AUD, while interest income increased by 33% to 52 million AUD, primarily due to higher cash balances during the reporting period - Net finance income increased by 111% from 9 million AUD in the first half of 2024 to 19 million AUD in the first half of 2025[107] - Interest income increased by 33% from 39 million AUD in the first half of 2024 to 52 million AUD in the first half of 2025, primarily due to higher cash balances during the reporting period[107] Profit Before Income Tax and Margin Profit before income tax decreased by 58% from 571 million AUD in the first half of 2024 to 239 million AUD in the first half of 2025, with the profit before income tax margin as a percentage of operating revenue declining from 18% to 9% over the same period - Profit before income tax decreased by 58% from 571 million AUD in the first half of 2024 to 239 million AUD in the first half of 2025[109] - The profit before income tax margin as a percentage of operating revenue decreased from 18% to 9% over the same period[109] Income Tax Expense Income tax expense decreased from 151 million AUD in the first half of 2024 to 76 million AUD in the first half of 2025, with effective tax rates of 26.4% and 31.8% respectively, the increase primarily due to adjustments related to prior year tax provision estimates - Income tax expense decreased from 151 million AUD in the first half of 2024 to 76 million AUD in the first half of 2025[110] - The effective tax rates were 26.4% and 31.8% respectively, with the increase primarily due to adjustments related to prior year tax provision estimates[110] Profit After Income Tax and Margin Profit after income tax decreased by 61% from 420 million AUD in the first half of 2024 to 163 million AUD in the first half of 2025, with the profit after income tax margin as a percentage of operating revenue declining from 14% to 6% over the same period - Profit after income tax decreased by 61% from 420 million AUD in the first half of 2024 to 163 million AUD in the first half of 2025[111] - The profit after income tax margin as a percentage of operating revenue decreased from 14% to 6% over the same period[111] Earnings Per Share Attributable to Ordinary Equity Holders of the Company Basic earnings per share decreased by 61% from 31.9 AUD cents/share in the first half of 2024 to 12.4 AUD cents/share in the first half of 2025, and diluted earnings per share also decreased by 61% to 12.4 AUD cents/share, primarily due to reduced profit after income tax - Basic earnings per share decreased by 61% from 31.9 AUD cents/share in the first half of 2024 to 12.4 AUD cents/share in the first half of 2025[112] - Diluted earnings per share decreased by 61% from 31.8 AUD cents/share in the first half of 2024 to 12.4 AUD cents/share in the first half of 2025[112] Non-Operating Items Overview For the half-year ended June 30, 2025, non-operating items had a net positive impact of 8 million AUD on profit before tax, primarily including contingent royalty expenses, contingent royalty remeasurement gains, and royalty receivable remeasurement gains Impact of Non-Operating Items on Profit Before Tax (million AUD) | Item | 2025 Half-Year | 2024 Half-Year | | :--- | :--- | :--- | | Contingent Royalty Expense | (18) | (14) | | Contingent Royalty Remeasurement | 24 | (16) | | Royalty Receivable Remeasurement | 2 | 2 | | Profit / (Loss) Impact Before Tax | 8 | (28) | - Contingent royalty expenses are related to contingent royalties payable to Rio Tinto, triggered when the globalNewcastle index price exceeds a certain threshold[113] Cash Flow Analysis For the half-year ended June 30, 2025, net cash inflow from operating activities decreased by 44% to 473 million AUD, primarily due to reduced operating EBITDA and inventory changes; net cash outflow from investing activities increased by 43% to 400 million AUD, mainly due to higher capital expenditure; and net cash outflow from financing activities increased by 56% to 713 million AUD, primarily due to increased dividend payments Net Cash Flow from Operating Activities Net cash inflow from operating activities decreased by 378 million AUD (44%) to 473 million AUD, primarily due to a 558 million AUD reduction in net receipts from customers less payments to suppliers, reflecting a 395 million AUD decrease in operating EBITDA, a 128 million AUD change in inventories, and a 172 million AUD reduction in tax payments - Net cash inflow from operating activities decreased by 378 million AUD (44%) to 473 million AUD[116] - This was primarily due to a 558 million AUD reduction in net receipts from customers less payments to suppliers, reflecting a 395 million AUD decrease in operating EBITDA and a 128 million AUD change in inventories[116] Net Cash Flow from Investing Activities Net cash outflow from investing activities increased by 121 million AUD (43%) to 400 million AUD, primarily due to a 121 million AUD increase in capital expenditure - Net cash outflow from investing activities increased by 121 million AUD (43%) to 400 million AUD[117] - This was primarily due to a 121 million AUD increase in capital expenditure[117] Net Cash Flow from Financing Activities Net cash outflow from financing activities increased by 256 million AUD (56%) to 713 million AUD, primarily due to the payment of the 2024 final declared dividend of 687 million AUD - Net cash outflow from financing activities increased by 256 million AUD (56%) to 713 million AUD[118] - In the first half of 2025, net cash outflow from financing activities included 687 million AUD paid for the settlement of the 2024 final declared dividend[119] Financial Resources and Liquidity As of June 30, 2025, current assets decreased by 658 million AUD to 2.882 billion AUD, mainly due to a reduction in cash and cash equivalents; current liabilities decreased by 27 million AUD; total assets decreased by 572 million AUD, and total equity decreased by 514 million AUD; the net cash position decreased from 2.349 billion AUD to 1.667 billion AUD, resulting in a virtually zero net gearing ratio; the company faces foreign currency risk and hedges through forward foreign exchange contracts Liquidity Overview As of June 30, 2025, current assets decreased by 658 million AUD to 2.882 billion AUD, primarily due to a 666 million AUD reduction in cash and cash equivalents; current liabilities decreased by 27 million AUD to 1.207 billion AUD; total assets decreased by 572 million AUD to 11.784 billion AUD, and total equity decreased by 514 million AUD to 8.803 billion AUD Financial Position Overview (million AUD) | Metric | June 30, 2025 | December 31, 2024 | Change (million AUD) | | :--- | :--- | :--- | :--- | | Total Current Assets | 2,882 | 3,540 | (658) | | Total Current Liabilities | (1,207) | (1,234) | 27 | | Net Current Assets | 1,675 | 2,306 | (631) | | Total Assets | 11,784 | 12,356 | (572) | | Total Liabilities | (2,981) | (3,039) | 58 | | Total Equity | 8,803 | 9,317 | (514) | - The Group's primary sources of liquidity include an opening cash position of 2.461 billion AUD and cash flow from operating activities of 473 million AUD for the half-year ended June 30, 2025[123] Capital Structure and Net Gearing Ratio The Group's net cash position decreased from 2.349 billion AUD on December 31, 2024, to 1.667 billion AUD on June 30, 2025; due to holding a net cash position, the net gearing ratio is effectively zero; the company faces foreign currency risk and hedges a portion of USD-denominated contract sales and foreign currency-denominated asset purchases through forward foreign exchange contracts Capital Structure (million AUD) | Metric | June 30, 2025 | December 31, 2024 | Change (million AUD) | | :--- | :--- | :--- | :--- | | Interest-Bearing Liabilities | 128 | 112 | 16 | | Less: Cash and Cash Equivalents | (1,795) | (2,461) | 666 | | Net (Cash) / Debt | (1,667) | (2,349) | 682 | | Total Equity | 8,803 | 9,317 | (514) | | Net Debt + Total Equity | 7,136 | 6,968 | 168 | - The Group's net cash position decreased from 2.349 billion AUD on December 31, 2024, to 1.667 billion AUD on June 30, 2025[127] - The company hedges a portion of USD-denominated contract sales and foreign currency-denominated asset purchases with corresponding currencies to mitigate adverse impacts on cash flows from future appreciation or depreciation of the AUD against relevant currencies[131] Available Debt Facilities As of June 30, 2025, the Group had 198 million AUD in undrawn bank guarantees within its 1.2 billion AUD contingent debt facility, which is for operational purposes and provided in the ordinary course of business to support port, rail, government, and other operational departments; the contingent debt facility matures in February 2026 and is currently undergoing refinancing - As of June 30, 2025, the Group had 198 million AUD in undrawn bank guarantees within its 1.2 billion AUD contingent debt facility[132] - The contingent debt facility matures in February 2026 and is currently undergoing refinancing[132] - Yanzhou Coal Mining Company Limited directors have provided a letter of support, ensuring the Group's continued operation and solvency as long as Yanzhou Coal Mining Company Limited holds at least 51% of the company's shares[132] Capital Expenditure and Future Development For the half-year ended June 30, 2025, cash outflow for property, plant, and equipment capital expenditure increased year-on-year to 407 million AUD; capital commitments totaled 189 million AUD at the end of the reporting period; the company continues to seek high-quality acquisition opportunities and focuses on organic growth, advancing brownfield expansions and extension projects, particularly at tier-one assets such as Moolarben, Warkworth, and Hunter Valley Capital Expenditure and Commitments For the half-year ended June 30, 2025, the Group's cash outflow for property, plant, and equipment capital expenditure was 407 million AUD (first half of 2024: 286 million AUD); as of June 30, 2025, the Group's capital commitments totaled 189 million AUD (December 31, 2024: 312 million AUD) - For the half-year ended June 30, 2025, the Group's cash outflow for property, plant, and equipment capital expenditure was 407 million AUD (first half of 2024: 286 million AUD)[133] - As of June 30, 2025, the Group's commitments included capital commitments of 189 million AUD (December 31, 2024: 312 million AUD)[133] Significant Investments and Development Strategy The company continues to seek high-quality acquisition opportunities and focuses on organic growth, advancing brownfield expansions and extension projects, particularly at tier-one assets such as Moolarben, Warkworth, and Hunter Valley; studies for the Warkworth underground mine project and the Hunter Valley mine life extension application are ongoing; any new plans are carefully evaluated and require review and approval by the Yancoal Australia Board before commencement - The Group will continue to focus on exploration and potential expansion projects at its tier-one assets in Moolarben, Warkworth, and Hunter Valley[135] - The Warkworth underground mine project study requires further evaluation, with a feasibility study potentially commencing in 2026[135] - The Hunter Valley Joint Venture proposed a significant mine life extension within existing mining leases, and an 18-month extension application to DPHI was approved[135] Employees and Risk Management As of June 30, 2025, the Group had approximately 3,900 employees, with total employee costs of 409 million AUD; the company is committed to employee capability development, psychological safety, and diversity, with female employees consistently at 15.6%, new female hires at 21%, and a decrease in female employee turnover; the Group faces currency, price, interest rate, credit, and liquidity risks, managed through tools such as forward foreign exchange contracts; as of June 30, 2025, total contingent liabilities were 1.002 billion AUD, primarily comprising bank guarantees and performance bonds Employee Profile and Development As of June 30, 2025, the Group had approximately 3,900 employees, with total employee costs of 409 million AUD; the company is committed to employee capability development, psychological safety, and diversity, with female employees consistently at 15.6%, new female hires at 21%, and a decrease in female employee turnover - As of June 30, 2025, the Group had approximately 3,900 employees, with total employee costs of 409 million AUD (first half of 2024: 401 million AUD)[138] - In 2025, the proportion of female employees remained stable at 15.6%, with female new hires reaching 21%, and female employee turnover decreasing from 14.6% in June 2024 to 10.4%[140] - The company launched the "Leading the Way" leadership program and the IGNITE talent development program, and continues to implement mental health initiatives and workplace behavior training[139][140] Financial and Other Risk Management The Group faces financial risks from its operations and use of financial instruments, primarily including currency risk, price risk, interest rate risk, credit risk, and liquidity risk, which are managed through tools such as forward foreign exchange contracts; as of June 30, 2025, 281 million AUD in provisionally priced sales remain unsettled, with a 10% price fluctuation impacting 28 million AUD - The Group faces financial risks from its operations and use of financial instruments, primarily including currency risk, price risk, interest rate risk, credit risk, and liquidity risk[143] - As of June 30, 2025, provisionally priced sales totaling 281 million AUD remain unsettled; a 10% increase/decrease in price would increase/decrease provisionally priced sales by 28 million AUD[143] Contingent Liabilities and Asset Pledges As of June 30, 2025, the Group's contingent liabilities included 1.002 billion AUD in bank guarantees and insurance bonds, primarily for performance guarantees to third parties and reclamation cost guarantees to government departments as required by regulations for mining leases; contingent debt facilities are secured by assets of Yancoal Resources Ltd and Coal & Allied Industries Pty Ltd consolidated group Contingent Liabilities (million AUD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Guarantees and Insurance Bonds | 1,002 | 1,038 | - Contingent debt facilities are secured by assets of Yancoal Resources Ltd and Coal & Allied Industries Pty Ltd consolidated group, with a carrying value of 7.702 billion AUD as of June 30, 2025[146] Outlook The Group is on track to achieve the upper end of its full-year attributable saleable coal production guidance of 35 million to 39 million tonnes and aims to control full-year cash operating costs in the lower half of the 89 AUD/tonne to 97 AUD/tonne range; full-year property, plant, and equipment capital expenditure is expected to progressively reach the guidance range of 750 million AUD to 900 million AUD; the acquisition of an additional 3.75% interest in the Moolarben Joint Venture is expected to increase full-year attributable saleable coal production by approximately 0.2 million tonnes - The Group is highly likely to achieve the upper end of its full-year attributable saleable coal production guidance target of 35 million to 39 million tonnes[147] - The Group aims to control full-year cash operating costs in the lower half of the full-year guidance range of 89 AUD/tonne to 97 AUD/tonne[147] - Full-year capital expenditure for property, plant, and equipment is expected to progressively reach the full-year guidance range of 750 million AUD to 900 million AUD[147] - The acquisition of an additional 3.75% interest in the Moolarben Joint Venture is expected to impact full-year attributable saleable coal production by approximately 0.2 million tonnes[147] Consolidated Financial Statements This section contains the Consolidated Statement of Profit or Loss and Other Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity, and Consolidated Statement of Cash Flows for Yancoal Australia Ltd and its subsidiaries for the half-year ended June 30, 2025, providing a formal report on the Group's financial performance and position during the period Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended June 30, 2025, the company reported revenue of 2,675 million AUD, profit after income tax of 163 million AUD, and basic and diluted earnings per share of 12.4 AUD cents Consolidated Statement of Profit or Loss and Other Comprehensive Income (million AUD) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Revenue | 2,675 | 3,138 | | Profit Before Income Tax | 239 | 571 | | Profit After Income Tax | 163 | 420 | | Attributable to Yancoal Australia Ltd Shareholders | 163 | 420 | | Basic Earnings Per Share (AUD cents) | 12.4 | 31.9 | | Diluted Earnings Per Share (AUD cents) | 12.4 | 31.8 | Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were 11.784 billion AUD, total liabilities were 2.981 billion AUD, and net assets were 8.803 billion AUD; cash and cash equivalents totaled 1.795 billion AUD, and inventories were 548 million AUD Consolidated Statement of Financial Position (million AUD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | 2,882 | 3,540 | | Total Non-Current Assets | 8,902 | 8,816 | | Total Assets | 11,784 | 12,356 | | Total Current Liabilities | 1,207 | 1,234 | | Total Non-Current Liabilities | 1,774 | 1,805 | | Total Liabilities | 2,981 | 3,039 | | Net Assets | 8,803 | 9,317 | Consolidated Statement of Changes in Equity As of June 30, 2025, total share capital and reserves attributable to Yancoal Australia Ltd shareholders were 8.801 billion AUD, with profit after income tax of 163 million AUD and dividends paid of 687 million AUD during the period Consolidated Statement of Changes in Equity (million AUD) | Metric | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Opening Balance (Attributable to Yancoal Australia Shareholders) | 9,315 | 8,440 | | Profit After Income Tax | 163 | 420 | | Dividends Paid | (687) | (429) | | Closing Balance (Attributable to Yancoal Australia Shareholders) | 8,801 | 8,438 | Consolidated Statement of Cash Flows For the half-year ended June 30, 2025, net cash inflow from operating activities was 473 million AUD, net cash outflow from investing activities was 400 million AUD, and net cash outflow from financing activities was 713 million AUD, resulting in a net decrease of 640 million AUD in cash and cash equivalents Consolidated Statement of Cash Flows (million AUD) | Cash Flow Type | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 473 | 851 | | Net Cash Outflow from Investing Activities | (400) | (279) | | Net Cash Outflow from Financing Activities | (713) | (457) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (640) | 115 | | Cash and Cash Equivalents at End of Period | 1,795 | 1,546 | Notes to the Consolidated Financial Statements This section provides detailed notes to the consolidated financial statements for the half-year ended June 30, 2025, covering the basis of preparation, segment information, revenue, expenses, taxation, earnings per share, operating assets and liabilities (including property, plant and equipment, mining tenements, asset impairment, exploration and evaluation assets, intangible assets, trade and other receivables, inventories, trade and other payables), capital structure and financing (including interest-bearing liabilities, contributed equity, share-based payments, dividends, reserves, contingent matters, fair value measurement of assets and liabilities), group structure (including interests in other entities, related party transactions), and other information (including commitments and post-reporting period events) Basis of Preparation of Half-Year Financial Statements The half-year financial statements are prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001, complying with International Financial Reporting Standards, and the independent auditor's review report on the consolidated financial statements is unqualified - The half-year financial statements are prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001, and comply with International Financial Reporting Standards issued by the International Accounting Standards Board[160][161] - The independent auditor's review report on the consolidated financial statements is unqualified and without modification[162] Segment Information The company reports performance across two geographical segments: New South Wales and Queensland; as of June 30, 2025, the New South Wales segment generated 2.277 billion AUD in revenue, and the Queensland segment generated 281 million AUD; operating EBITDA was 595 million AUD, and operating EBIT was 212 million AUD; revenue from the top five external customers accounted for approximately 36% of coal sales revenue Segment Revenue and Profit (million AUD) | Metric | New South Wales | Queensland | Head Office | Total | | :--- | :--- | :--- | :--- | :--- | | Total Segment Revenue | 2,277 | 281 | — | 2,558 | | Operating EBIT | 278 | (55) | (11) | 212 | | Operating EBITDA | 637 | (34) | (8) | 595 | - Revenue from the top five external customers was 918 million AUD (June 30, 2024: 1.167 billion AUD), accounting for approximately 36% of the Group's total coal sales revenue (June 30, 2024: 39%)[166] Revenue Details As of June 30, 2025, total revenue was 2.675 billion AUD, with coal sales revenue at 2.558 billion AUD; revenue is disaggregated by major geographical markets and product mix, with Japan, China, Taiwan, and South Korea remaining key markets; 281 million AUD in provisionally priced sales remain unsettled Revenue Composition (million AUD) | Revenue Source | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Coal Sales | 2,558 | 3,030 | | Freight | 39 | 44 | | Interest Income | 52 | 39 | | Royalty Income | 13 | 12 | | Other Items | 13 | 13 | | Total Revenue | 2,675 | 3,138 | Coal Sales Revenue Disaggregated by Major Geographical Markets (million AUD) | Geographical Market | June 30, 2025 | | :--- | :--- | | Japan | 757 | | China | 688 | | Taiwan | 335 | | South Korea | 310 | | Thailand | 191 | | Vietnam | 104 | | Malaysia | 52 | | India | 45 | | Europe | 44 | | Indonesia | 20 | | Chile | 8 | | Australia | 4 | | Total | 2,558 | - As of June 30, 2025, revenue from provisionally priced sales of 281 million AUD (June 30, 2024: 279 million AUD) remains unsettled[170] Other Income As of June 30, 2025, total other income was 31 million AUD, primarily comprising 24 million AUD in contingent royalty remeasurement gains and 5 million AUD in miscellaneous income; net foreign exchange gains decreased from 50 million AUD in the first half of 2024 to zero Other Income (million AUD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Contingent Royalty Remeasurement Gain | 24 | — | | Miscellaneous Income | 5 | 1 | | Royalty Receivable Remeasurement Gain | 2 | 2 | | Net Foreign Exchange Gain | — | 50 | | Total | 31 | 53 | Expense Details As of June 30, 2025, total employee benefits were 409 million AUD, and total finance costs were 21 million AUD; total other operating expenses were 160 million AUD, primarily including a net foreign exchange loss of 30 million AUD and Safeguard Mechanism expenses of 17 million AUD; operating expenses from the largest supplier and top five suppliers accounted for 8.0% and 29.0% respectively Employee Benefits (million AUD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Employee Benefits | 370 | 367 | | Superannuation Contributions | 39 | 34 | | Total | 409 | 401 | Other Operating Expenses (million AUD) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net Foreign Exchange Loss | 30 | — | | Safeguard Mechanism Expenses | 17 | 5 | | Contingent Royalty Payments | 18 | 14 | | Total | 160 | 138 | - For the first six months of 2025, 8.0% of total operating expenses came from the largest supplier, and 29.0% came from the top five suppliers[175] Taxation As of June 30, 2025, income tax expense was 76 million AUD, with an effective tax rate of 31.8%; the increase in the effective tax rate was primarily due to adjustments related to prior year tax provision estimates Income Tax Expense (million AUD) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Income Tax Expense | (76) | (151) | - For the half-year ended June 30, 2025, the estimated average tax rate used was 31.8% (June 30, 2024: 26.4%)[176] Earnings Per Share As of June 30, 2025, both basic and diluted earnings per share were 12.4 AUD cents, with the weighted average number of ordinary shares used to calculate earnings per share being 1,317,280,353 shares Earnings Per Share (AUD cents