Financial Data and Key Metrics Changes - The company reported the best first half operational performance in the past five years, with long coal and attributable sellable coal volume up by 15% to 16% compared to last year [6][7] - The cash balance at the end of the quarter was $1,800,000,000 after paying a fully franked final dividend of $687,000,000 [8][20] - Cash operating costs for the first half are expected to be towards the middle of the guidance range of $89 to $97 per tonne [7][21] Business Line Data and Key Metrics Changes - Total ROM coal production increased to 17,000,000 tonnes, which is 12% more than the first quarter and 23% more than the second quarter last year [9][10] - Attributable saleable coal production was 9,400,000 tonnes, similar to the first quarter and 15% more than the second quarter last year [10][12] - The sales volume of 8,100,000 tonnes was 1,300,000 tonnes lower than saleable production due to logistical issues [14][20] Market Data and Key Metrics Changes - Global thermal coal demand remains strong despite a decrease in Indonesian exports by 11% and Colombian exports by 23% [15][16] - The average realized thermal coal price was AUD 130 per tonne, and the average realized metallurgical coal price was AUD 197 per tonne, both down from the previous quarter [18] - The overall average realized price decreased to AUD 142 per tonne compared to AUD 157 in the prior quarter [18] Company Strategy and Development Direction - The company is focused on maximizing operational efficiency and minimizing costs in response to decreasing coal prices [7] - There is an intention to consider acquisition opportunities during the cyclical downturn while balancing capital management and returns [48][80] - The company aims to maintain a strong financial position with $1,800,000,000 in cash and no interest-bearing debt [20][80] Management's Comments on Operating Environment and Future Outlook - Management noted that the coal industry is currently at the bottom of the cycle, with expectations for a recovery towards the end of the year [56] - The company is well-positioned to navigate the cyclical low in coal prices, with competitive cash operating costs and strong cash reserves [95] - There is an expectation that delayed shipments from the second quarter will be delivered in the current quarter [15][26] Other Important Information - The total recordable injury frequency rate improved to 6.32, below the industry average of 7.93 [9] - The company is currently undergoing a CEO recruitment process, with a strong management team in place during the interim [82] Q&A Session Summary Question: Will the sales volume from the second quarter be fully translated into sales in the third quarter? - Management expects the sales volume of approximately 1,400,000 tonnes that slipped from the second quarter to be recovered in the third quarter [26][27] Question: What is the expected growth in metallurgical coal volume compared to thermal coal? - The metallurgical coal volumes represent about 20% to 25% of overall sales and are expected to remain stable moving forward [32] Question: Is the company looking to mitigate costs and CapEx in the current price environment? - The company is focused on optimizing its capital expenditure and minimizing costs while considering value-accretive opportunities during the downturn [48][50] Question: How does the decrease in China's coal imports affect Yancoal? - Yancoal's contracts with China remain unaffected, and the company continues to supply high-quality coal despite the decrease in imports [60][61] Question: What is the company's position on potential asset acquisitions? - The company is open to considering both internal and external opportunities for acquisitions, focusing on value accretion [101][102]

Group 1: Market Overview - On Tuesday, coking coal futures experienced a rebound after a decline due to falling crude oil prices, with coking coal main contract rising 0.75% to 804.5 CNY/ton and coke main contract increasing 1.46% to 1387.5 CNY/ton [1] - The import volume of Mongolian coking coal has become a significant factor in port inventory reduction, with current port inventory around 3 million tons, which has increased to 4 million tons after the restoration of customs clearance [1][2] - The overall supply of coking coal remains loose, with no significant improvement in the supply-demand fundamentals despite a decrease in import volumes [2][3] Group 2: Supply and Demand Dynamics - Steel mills' daily molten iron production has stabilized around 2.42 million tons, with a profitability rate of approximately 58%, but high molten iron levels have not effectively reduced coking coal inventory [2] - The demand for coking coal is expected to remain weak, with the fourth round of coke price reductions leading to a drop of 240-250 CNY/ton [2][3] - The coal market is anticipated to see an increase in supply exceeding demand in early July, potentially stabilizing coal prices if extreme weather does not occur [4] Group 3: Future Price Trends - The market sentiment remains cautious, with the price support for coking coal relatively weak due to the ongoing loose supply conditions [3][6] - The recent geopolitical tensions have subsided, leading to a significant drop in crude oil futures, which may influence energy prices [7] - The coking coal market is expected to maintain a wide range of fluctuations in the near term due to mixed market factors and ongoing supply pressures [6][7]

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core View The report concludes that as of late June, coal production in major producing areas has declined, but overall supply remains relatively abundant. Power plant inventory depletion is slow, and with the impact of imported coal, power plants only maintain necessary purchases. Port inventory is continuously decreasing. As temperatures rise nationwide, power plant daily consumption will continue to increase seasonally, and there will be necessary purchases later. The port FOB price is temporarily stable, and coal prices in the pithead area are expected to remain stable [5]. 3. Summary by Directory Market Review - On June 23, port market price - holding sentiment persisted, and trader quotes continued to rise. For example, the 5500 - kcal market quote was 615 - 620 yuan/ton, and different regions had their own price ranges for various coal types [3]. Important News - In May 2025, China imported 2865.3 million tons of thermal coal (non - coking coal), a year - on - year decrease of 16.06% and a month - on - month decrease of 0.96%. From January to May 2025, the cumulative import of thermal coal was 14500.2 million tons, a year - on - year decrease of 7.9%. In May 2025, China imported 738.7 million tons of coking coal, a year - on - year decrease of 23.7% and a month - on - month decrease of 16.9% [4]. Logical Analysis - **Supply**: Pithead prices have temporarily stopped falling and stabilized. Some coal mines have shut down, and the coal mine operating rates in major coal - producing areas in Shanxi, Shaanxi, and Inner Mongolia have declined. As of June 22, the coal mine operating rate in Ordos was 66%, and in Yulin it was 44%. The daily coal output in Ordos and Yulin was around 3.7 million tons, but the overall domestic supply was still abundant. The domestic and imported markets showed different trends, with the domestic coal price basically stable and imported coal prices falling [5]. - **Demand**: Power plant loads were generally low, and inventories were at high levels. Power plants mainly relied on long - term contract coal. Some coastal power plants had nearly completed their August imported coal purchases. Non - power sectors such as cement had low operating rates, while the operating rates of coal - to - methanol and coal - to - urea were high, and the demand for chemical coal was fair, providing stable support for coal prices in the pithead area [5]. - **Inventory**: Due to shipping losses, port inflows decreased. The daily average freight volume of the Datong - Qinhuangdao line dropped to 1 million tons, and the number of approved carriages by the Hohhot Railway Bureau dropped to around 30. Outflows were low, and port inventory continued to decrease. As of June 23, the inventory at Bohai Rim ports was around 26.7 million tons, a reduction of 5 million tons from the high level but still relatively high. Coastal power plant daily consumption increased seasonally, but inventory depletion was slow, and inland power plant inventories remained high [5].

Investment Rating - The report maintains an "Overweight" rating for the coal mining industry [4] Core Views - The coal mining sector is currently facing a prolonged downturn in prices, with market sentiment at a low point. However, there are signs of potential recovery as some production capacities are experiencing losses, indicating a gradual emergence of cost support. The industry is awaiting favorable policy changes to restore confidence [2][10] Summary by Sections Industry Trends - The coal mining market is experiencing a narrow adjustment with slight supply tightening in major production areas. Downstream demand remains primarily driven by essential needs [13] - Port inventories are continuously decreasing, but there is still a lack of upward momentum in prices due to limited demand from downstream buyers [14] - The shipping market has seen a slight increase in the number of vessels at northern ports, indicating some recovery in logistics [27] Key Companies - Recommended stocks include China Shenhua (601088.SH), Shaanxi Coal and Chemical Industry (601225.SH), and Xinji Energy (601918.SH), all rated as "Buy" with projected earnings per share (EPS) growth [9] - China Shenhua is highlighted as a central enterprise with strong performance, while companies like Qinfa and New Hope Energy are noted for their potential turnaround [10] Price Movements - As of May 30, the price of thermal coal at the port is reported at 620 CNY/ton, remaining stable week-on-week. However, the market is characterized by a lack of strong demand from power plants, leading to a cautious purchasing attitude [37] - Coking coal prices are under pressure, with significant declines observed in various grades, indicating a bearish market sentiment [40][53] Market Outlook - The report emphasizes that the coal industry will maintain its critical role in China's energy system during the 14th Five-Year Plan period. The overall supply-demand balance is expected to remain stable, with a potential increase in industry concentration [37]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core View The coal market currently has an overall ample supply. Although the coal price at ports continues to decline, the decline is expected to gradually slow down as the temperature rises and power plants increase their inventory replenishment. The demand for chemical coal in the pit - mouth area is fair, but the support from power plant long - term contracts is weakening [5]. 3. Summary by Directory Market Review - On May 21, the port market was mainly in a wait - and - see mode, with traders' quotes weakly stable. For example, the 5500 - calorie market was quoted at 615 - 620 yuan/ton, and different regions had different price ranges for various coal calorific values [3]. Important News - In April, the total social electricity consumption was 772.1 billion kWh, a year - on - year increase of 4.7%. The electricity consumption of the first, second, third industries and urban and rural residents all increased to varying degrees [4]. Logical Analysis - **Supply**: The pit - mouth price continued to decline, and the coal mine operating rate in the main producing areas of Shanxi, Shaanxi, and Inner Mongolia decreased. As of May 20, the coal mine operating rate in Ordos was 68%, and in Yulin it was 46%. The daily coal output in Ordos and Yulin was around 3.9 - 4 million tons, and the overall domestic supply was still abundant. The imported coal price followed the decline of the domestic coal price [5]. - **Demand**: The current power load was only maintained at about 60%, and some power plants' inventories were saturated, so power plants' procurement strategies were cautious. The cement operating rate at the non - power end was low, while the operating rates of coal - to - methanol and coal - to - urea were high, and the demand for chemical coal was fair [5]. - **Inventory**: The port inventory was high, and the port began to restrict coal loading. The daily transportation volume of the Datong - Qinhuangdao Line decreased to 1 million tons, and the number of approved carriages by the Hohhot Railway Bureau decreased to around 30. As of May 21, the inventory of Bohai Rim ports was around 29.76 million tons, a decrease of 1.5 million tons from the high level, but still high. The daily consumption of coastal power plants was low, and the inventory reduction was slow. The total inventory of national power plants remained at a high level in the same period of previous years, and the inventory reduction speed was slow [5]. - **Overall situation**: In late May, the coal production in the main producing areas was stable, and the overall supply was still relatively abundant. Power plants' inventory reduction was slow, and due to the impact of imported coal, power plants only maintained rigid - demand procurement. The port inventory increased passively, and the available resources for sale were abundant. The port FOB price continued to decline, but the decline was expected to slow down [5].

大宗商品研究 能源化工研发报告 煤炭日报 2025 年 5 月 7 日 煤炭日报 【市场回顾】 现货市场：5 月 7 日，港口市场看跌情绪浓厚，贸易商报价维持偏弱，现 5500 大卡 市场报价 650 元/吨，5000 大卡市场报价 570-580 元/吨，4500 大卡市场报价 515 元/吨； 内蒙地区非电企业用煤 5500 大卡煤炭含税价在 420 - 460 元/吨，5000 大卡煤炭价格在 350 - 390 元/吨，4500 大卡煤炭价格则在 270 - 310 元/吨；榆林地区非电企业用煤 6000 大卡煤价格区间为 510-540 元/吨，5800 大卡煤价格区间为 485-515 元/吨；山西非电企 业用煤 5500 大卡煤种的含税价格处于 460 - 510 元/吨，5000 大卡煤种价格为 400 - 450 元/吨，4500 大卡煤种价格则在 340 - 390 元/吨之间。江内港口 5500 大卡动力煤报价在 695-710 元/吨，5000 大卡动力煤报价 610-625 元/吨。 【重要资讯】 1-3 月，全国各电力交易中心累计组织完成市场交易电量 14574.8 亿千瓦时，同比 ...

大宗商品研究 能源化工研发报告 煤炭日报 2025 年 4 月 28 日 煤炭日报 【市场回顾】 现货市场：4 月 28 日，下游客户采购积极性较低，港口贸易商报价小幅松动，现 5500 大卡市场报价 660-665 元/吨，5000 大卡市场报价 580-585 元/吨，4500 大卡市场报 价 520 元/吨；内蒙地区非电企业用煤 5500 大卡煤炭含税价维持在 430 - 470 元/吨区间， 5000 大卡煤炭为 360 - 400 元/吨，4500 大卡煤炭价格则在 280 - 320 元/吨；榆林地区非 电企业用煤 6000 大卡煤价格区间为 525 - 555 元/吨，5800 大卡煤价格区间为 500 - 530 元/吨；山西非电企业用煤 5500 大卡煤种含税价格处于 470 - 520 元/吨区间，5000 大卡 煤种为 410 - 460 元/吨，4500 大卡煤种价格则在 350 - 400 元/吨之间。江内港口 5500 大 卡动力煤报价在 705-710 元/吨，5000 大卡动力煤报价 635-650 元/吨。 【重要资讯】 煤炭生产增速加快，产量再创历史同期新高，1-3 月份， ...

Group 1: Report Overview - Report Title: Coal Daily Report, April 16, 2025 [2] - Report Type: Commodity Research, Energy and Chemical Industry R & D Report [1][8] Group 2: Market Review - Spot Market: On April 16, the port market was mainly stagnant, and traders' quotes remained stable. The market quotes for 5500 - kcal coal were 670 - 675 yuan/ton, 5000 - kcal coal were 595 - 600 yuan/ton, and 4500 - kcal coal were 525 - 530 yuan/ton. Different regions had different price ranges for non - electric enterprise coal [3]. Group 3: Important News - Coal Production: In March, the raw coal output of above - scale industries was 440 million tons, a year - on - year increase of 9.6%, and the growth rate was 1.9 percentage points faster than that from January to February. From January to March, the raw coal output of above - scale industries was 1.2 billion tons, a year - on - year increase of 8.1% [4]. Group 4: Logic Analysis Supply - Mine Production: With the stabilization of pit - mouth prices, coal mines basically resumed normal production. As of April 15, the coal mine operating rates in Ordos and Yulin regions were 71% and 48% respectively, and the daily coal output in the two cities was around 3.9 - 4 million tons. The overall domestic supply was still abundant [5]. Demand - Power Plant Demand: Power plant daily consumption continued to decline, and the inventory level was at a medium - high level. Most power plants had low procurement willingness, and most of the small - volume purchases were based on rigid demand and price pressure. - Non - power Demand: The cement operating rate at the non - power end hovered at a low level. The restart of methanol and urea maintenance devices led to a high - level operation of the coal - to - methanol and coal - to - urea operating rates, and the overall demand for chemical coal was acceptable, providing stable support for coal prices in the pit - mouth area [5]. Inventory - Port Inventory: The daily average transportation volume of the Datong - Qinhuangdao Railway remained at 1 million tons, and the number of approved wagons by the Hohhot Railway Bureau dropped to 30 trains. Port inventory continued to accumulate passively. As of April 16, the inventory of Bohai Rim ports was around 30 million tons, reaching a record high [5]. - Power Plant Inventory: The daily consumption of coastal power plants decreased seasonally, and the inventory reduction was slow. The inventory of inland power plants remained high, resulting in the total inventory of national power plants remaining at a high level compared with the same period in previous years, and the inventory reduction speed was slow [5]. Price Forecast - Overall: In mid - April, the coal production in the main producing areas recovered, the coal mine operating rates in Ordos and Yulin regions were stable at a high level, and the daily output increased to 4 million tons. The power plant inventory reduction was slow, and due to the impact of imported coal, power plants only maintained rigid demand procurement. The port inventory increased passively, and the available resources were abundant. The national temperature was higher than the same period, the power plant daily consumption decreased seasonally, the coal consumption was average compared with the same period, the inventory available days were high, and the port FOB price was weakly stable. In the pit - mouth area, the operating rates of coal - chemical products were high, the demand for chemical coal was acceptable, but the support from power plant long - term agreements weakened. However, the import was in an inverted state, and the import volume of coal decreased significantly. It is expected that coal prices will be mainly weakly stable [5]. Group 5: Related Charts - The report provides multiple charts showing the inventory and daily consumption data of different ports and power plants from 2022 to 2025, including national ports, Bohai Rim ports, downstream ports, etc., as well as the inventory, daily consumption and available days data of coastal 8 - province power plants, inland 17 - province power plants and national power plants [9][13]