Financial Data and Key Metrics Changes - The company reported a cash balance of AUD 1,800,000,000 at the end of the quarter, following the payment of an interim dividend of approximately AUD 82,000,000, and remains free of interest-bearing debts [20][21][75] - Cash operating costs were AUD 93 per tonne at the half-year mark, which is in the middle of the guidance range of AUD 89 to AUD 97 per tonne [5][20] - The company is tracking to be in the upper half of its production guidance range of 35,000,000 to 39,000,000 tonnes for the full year [4][75] Business Line Data and Key Metrics Changes - The company produced 15,800,000 tonnes of ROM coal, translating to 12,300,000 tonnes of saleable coal, with an attributable share of 9,300,000 tonnes, all in line with forecasts [7][8][12] - Saleable coal production increased by 14% compared to the previous quarter, despite wet weather disruptions [11][12] - Attributable sales volume was 10,700,000 tonnes, which is 1% higher than the previous quarter [14] Market Data and Key Metrics Changes - International coal prices remained under pressure, with average realized prices for thermal coal at AUD 130 per tonne and metallurgical coal at AUD 195 per tonne [18] - The average overall realized sales price was AUD 140 per tonne, slightly down from AUD 142 per tonne in the prior quarter [18] - Total global seaborne trade is down 11% year-to-date, with Australian exports down 9% due to poor geological conditions [16] Company Strategy and Development Direction - The company aims to maximize operational performance and drive value generation for shareholders, focusing on maintaining controllable cost discipline [4][75] - The management is optimistic about the potential for recovery in coal prices, emphasizing the company's strong financial position and ability to explore opportunities during cyclical downturns [49][75] - The company is committed to maintaining a strong operational performance and cost control, which is seen as a competitive advantage [74][75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external and temporary cost pressures affecting cash operating costs but expects to deliver unit costs around the midpoint of the guidance range for the full year [5][20] - There is cautious optimism regarding the coal market, with indications that prices may have reached cyclical lows [18][75] - The company is closely monitoring the impact of weather conditions and logistics on sales and production [14][41] Other Important Information - The company has a strong balance sheet and good access to debt markets, allowing for the evaluation of potential growth opportunities [75] - The management highlighted the importance of maintaining a low-risk sales position and the ability to take advantage of spot opportunities in the market [32] Q&A Session Summary Question: How is the breakdown of cash costs looking, particularly transportation costs? - The CFO noted that transportation costs are largely fixed and will be supported by increased production, but temporary increased costs from the Port of Newcastle are expected due to weather disruptions [23][26][27] Question: What is the current inventory situation and outlook for sales recovery? - The Executive General Manager of Marketing and Logistics stated that the company is in a comfortable low-risk scenario regarding sales and is focused on recovering delayed sales volumes from the previous quarter [32] Question: What is the capital expenditure incurred in the third quarter? - The CFO confirmed that capital expenditure is consistent with guidance and is primarily driven by fleet upgrades and heavy equipment investments [36][37] Question: Is there any change in the view on per tonne production costs? - Management acknowledged that while there were hopes to move below the midpoint of the cost guidance, current expectations are to remain around the midpoint due to external pressures [51][52] Question: What is the outlook on Queensland royalties? - Management indicated that there are no anticipated changes to Queensland royalties at this time [68] Question: What is the expected profit for the upcoming quarter? - The company does not provide profit forecasts but offers guidance on production, cost, and capital expenditure ranges [58] Question: What are the implications of potential mergers and acquisitions? - Management reiterated that they do not comment on specific scenarios but emphasized the company's strong financial position to explore opportunities [66][67]
YANCOAL AUS(03668) - 2025 Q3 - Earnings Call Transcript