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]