Core Viewpoint - Yancoal's production and sales volumes showed mixed results in 2Q25, with production increasing but sales declining due to logistical challenges, leading to a downward revision of earnings forecasts while maintaining a BUY rating based on expected improvements in sales ratios and thermal coal price recovery [1][2]. Group 1: Production and Sales Performance - Yancoal's attributable production volume in 2Q25 grew by 15% YoY to 9.4 million tonnes, while attributable sales volume decreased by 6% YoY to 8.1 million tonnes [1]. - The sales volume of thermal coal decreased by 9% YoY to 6.8 million tonnes, while metallurgical coal sales increased by 30% YoY to 1.3 million tonnes [1]. - In 1H25, total attributable production volume increased by 11% YoY to 18.9 million tonnes, accounting for 48-54% of the full-year guidance of 35-39 million tonnes [1]. Group 2: Financial Performance - Yancoal's revenue in 2Q25 was approximately A$1.14 billion, representing a 26% YoY decline and a 14% QoQ decline [1]. - The blended average selling price (ASP) dropped by 22% YoY in 2Q25, with thermal ASP down 20% YoY to A$130 per tonne and metallurgical ASP down 38% YoY to A$197 per tonne [2]. - As of June 2025, Yancoal held a gross cash balance of A$1.8 billion, which is about 20% of its current market capitalization [2]. Group 3: Guidance and Outlook - Yancoal's full-year guidance remains unchanged, with attributable saleable production expected to be between 35-39 million tonnes, operating cash costs projected at A$89-97 per tonne, and capital expenditures estimated at A$750-900 million [3]. - Management expresses confidence in reaching the upper end of the production guidance range for the full year [1].