Financial Data and Key Metrics Changes - The company reported underlying EBITDA of US$147 million for the first half of 2025, impacted by a decline in average realized prices compared to the prior period [3][10] - FOB cash costs were approximately US$2 lower per ton compared to 2024, despite challenges from inflation and wet weather [10][11] - The average sales price per ton decreased by US$36 compared to the full year average of 2024, dropping from US$175 to US$132 [11][12] Business Line Data and Key Metrics Changes - Saleable production was reported at 6,500,000 tons, demonstrating responsiveness despite operational challenges [2][3] - South Walker Creek achieved record production in June, with over 1,000,000 tons of raw production, indicating a strong recovery [5][6] - Port Royal increased all production metrics compared to 2024, showcasing resilience despite wet weather [6][7] Market Data and Key Metrics Changes - The company noted a significant decrease in export coal prices, with actual sales prices around 25% lower than the previous year [11][12] - Queensland exports normalized to historical levels late in the half, but overall export volumes remained subdued compared to historical averages [26][27] - The metallurgical coal market showed signs of recovery, with expectations for improved pricing due to Indian restocking and Chinese governmental interventions [25][28] Company Strategy and Development Direction - The company is focusing on organic growth opportunities, including the Isaac Downs extension project, which is expected to provide life extension and infrastructure capacity [20][21] - Capital expenditure guidance is set to return to a steady state of US$80 million to US$100 million per annum, reflecting a more modest capital profile [18][19] - The company remains committed to shareholder returns, with a cautious approach to dividends in light of macroeconomic uncertainties [15][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the second half of 2025, with production profiles expected to improve significantly [32][50] - The company acknowledged the challenges faced in the first half due to weather impacts but remains confident in meeting production guidance [16][50] - There is a cautious outlook regarding coal prices and recovery risks, with management emphasizing the need for careful monitoring of market conditions [36][37] Other Important Information - The company generated approximately US$115 million in operational cash flows after capital expenditures during the first half of 2025 [12][14] - A total of US$60 million was returned to shareholders via dividends in the first half, with a decision made to refrain from an interim dividend due to economic uncertainties [14][15] - The company is actively working on cost optimization initiatives to maintain competitive unit costs moving forward [46][47] Q&A Session Summary Question: How have July and August performed in terms of production recovery? - Management indicated that recovery is underway, with July and August tracking to plan, but noted a steeper recovery profile expected towards the fourth quarter [32] Question: What is the outlook for dividends moving forward? - The Board is cautious about interim dividends due to market uncertainties but remains committed to shareholder returns based on free cash flow after debt service [33][36] Question: What are the conditions for advancing the Eagle Downs project? - Management stated that there is no immediate pressure to make investment decisions on Eagle Downs, emphasizing the importance of market conditions and project attractiveness [38][40]

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]

Financial Data and Key Metrics Changes - The company reported a cash balance of $1,800,000,000 at the end of the quarter after paying a fully franked final dividend of $687,000,000 or 52¢ per share [7][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 [6][21] - The average realized thermal coal price was AUD 130 per tonne, and the average realized metallurgical coal price was AUD 197 per tonne, resulting in an overall average realized price of AUD 142 per tonne, down from AUD 157 in the prior quarter [18][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 [8] - Attributable saleable coal production was 9,400,000 tonnes, similar to the first quarter and 15% more than the second quarter last year [9] - Attributable sales volume was 8,100,000 tonnes, which was 1,300,000 tonnes lower than saleable production due to logistical issues [12][13] Market Data and Key Metrics Changes - Global thermal coal demand remains strong despite a 14% reduction in thermal coal imports in China through the first five months of 2025 [15] - Indonesian exports are down 11% and Colombian exports are down 23% due to lower prices and planned production cuts [14] - The average prices for coal indices decreased by 21% to 22% compared to the previous quarter [18] Company Strategy and Development Direction - The company aims to maximize operational efficiency and minimize costs in response to decreasing coal prices [6] - The management is open to considering value-accretive opportunities during the cyclical downturn while maintaining a strong cash position [20][80] - The company is not currently looking into buyback options, focusing instead on maintaining liquidity [105] 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 [54] - The company is well-positioned to navigate the cyclical low in coal prices due to its strong cash balance and competitive cash operating costs [94] - There is an expectation that delayed shipments from the second quarter will be delivered in the third quarter, contributing to revenue generation [26][68] Other Important Information - The total recordable injury frequency rate improved to 6.32, below the industry average of 7.93 [8] - The company experienced significant sales volume slipping due to weather-related disruptions at the Port of Newcastle, impacting revenue and cash generation [7][14] 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 1,400,000 tonnes of sales that slipped to be recovered in the third quarter [26][27] Question: What is the expected growth in metallurgical coal volume compared to thermal coal? - Metallurgical coal represents about 20% to 25% of overall sales and is expected to remain stable moving forward [31] Question: What are the current cost levels compared to June? - The company noted an increase in coal inventory due to sales slippage, with an overall increase of about 1,200,000 tonnes [86] Question: What is the plan for future cash generation? - The company is operating as planned, with cash operating costs expected to be competitive, and is well-positioned to navigate the cyclical low [92][94] Question: Is the company considering asset acquisitions? - The company is open to value-accretive opportunities, including potential acquisitions in both thermal and metallurgical coal [100][101]