Financial Data and Key Metrics Changes - The company reported a cash balance of $1.8 billion at the end of the quarter, following an interim dividend payment of approximately $82 million [16][63] - Cash operating costs were A$93 per ton, consistent with the previous year and within the guidance range of A$89–97 per ton [4][16] - The company is tracking to be in the upper half of the production guidance range of 35 to 39 million tons for the full year [4][63] Business Line Data and Key Metrics Changes - The company produced 15.8 million tonnes of ROM coal, translating to 12.3 million tonnes of salable coal, with an attributable share of 9.3 million tonnes [7][10] - Attributable sales volume increased by 31% compared to the June quarter, reaching 10.7 million tonnes [5][11] - The two Hunter Valley open cut mines performed well, with a 14% increase in attributable salable coal over the June quarter [9] Market Data and Key Metrics Changes - International coal prices remained under pressure, with average realized prices for thermal coal at A$130 per ton and metallurgical coal at A$195 per ton [15] - The average prices for the indices improved marginally, with the API 5 index averaging $69 per ton and the Global Coal Newcastle index averaging $109 per ton [14] - Total global seaborne trade is down 11% year-to-date, with Australian exports down 9% due to poor geological conditions [12][13] Company Strategy and Development Direction - The company aims to maximize operational performance and drive value generation for shareholders [3] - The focus remains on maintaining controllable cost discipline while navigating external cost pressures [4][16] - The company is evaluating opportunities for growth, particularly during cyclical downturns in the market [42][63] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging coal market conditions but expressed optimism about the company's strong operational performance and financial position [63] - The company is well-positioned for an upswing in coal prices due to its tier-one assets operating in the bottom quartile of the cost curve [63] - Management expects to deliver production in the upper half of the guidance range, which would be the best performance in many years [63] Other Important Information - The company has encountered external and temporary cost pressures through the Port of Newcastle, impacting second-half cash operating costs [4][16] - The company is focused on achieving sales volumes that were delayed in the previous quarter due to disruptions [11][28] Q&A Session Summary Question: How is the breakdown of cash costs looking right now, particularly transportation costs? - The CFO noted that cash operating costs remain consistent, with some savings from diesel, but transportation costs have seen temporary increases due to wet weather and port issues [20][22] Question: How much inventory remains unsold at the end of the September quarter? - The company is in a comfortable position regarding unsold inventory and is focused on achieving sales while monitoring vessel arrivals closely [28] Question: What is the outlook on Queensland royalties? - The CFO stated that there are no anticipated changes to Queensland royalties at this time [58] Question: Has there been any change in the view on per tonne production costs? - Management confirmed that while external pressures are affecting costs, they still expect to be around the midpoint of the guidance range for the full year [45] 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 [51]
YANCOAL AUS(03668) - 2025 Q3 - Earnings Call Transcript