Financial Data and Key Metrics Changes - Yancoal achieved a record production of 10.4 million tons of attributable saleable coal in Q4 2025, contributing to an annual total of 38.6 million tons, also a company record [4][5] - Total ROM coal production increased by 20% compared to Q3 2025, reaching 18.9 million tons [7][8] - Average realized prices improved by 6% to AUD 148 per ton from the prior quarter [5][13] - The company ended the quarter with over AUD 2 billion in cash and no debt, reflecting a AUD 307 million increase in cash balance over the quarter [5][15] Business Line Data and Key Metrics Changes - Saleable coal production was 13.6 million tons, which is 11% more than Q3 2025 [8] - The attributable sales volume remained stable at 10.8 million tons, similar to Q3 2025 [10] Market Data and Key Metrics Changes - The average price on the API 5 index was 12% higher than in Q3, while the GC Newcastle index remained flat [10][12] - Japan's coal imports increased by 16%, while South Korea prioritized Indonesian and Colombian supplies over Australian coal [11] - Global demand for metallurgical coal declined, with a 7% decrease in seaborne metallurgical coal exports compared to 2024 [12][13] Company Strategy and Development Direction - Yancoal aims to maintain its position as a leading low-cost coal exporter, with expectations to deliver unit costs around the middle of the guidance range [5][15] - The company is considering dividends and potential growth opportunities due to its strong cash position [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about carrying operational momentum into 2026, with guidance on production and costs to be provided in February [5][6] - The company noted that while there were mixed performances in international coal markets, gains in coal price indices since the end of 2025 have sparked optimism among industry participants [13][15] Other Important Information - The total recordable injury frequency rate improved to 6.14, below the industry average of 7.45, indicating a commitment to safety [7] Q&A Session Summary Question: Current stockpiles and inventory levels - Sales and production are back to normal and matched, indicating a strong quarter [20] Question: Comments on New South Wales coal royalties - No discussions regarding changes to coal royalties have occurred, and the company is unaware of any changes [21] Question: Production profile of Hunter Valley Operations - Hunter Valley Operations had a strong fourth quarter, with effective management of wet weather impacts [24] Question: Insights on coal market outlook - Price recovery was noted towards the end of Q4, with expectations for a slight market pickup post-Chinese New Year [27] Question: Saleable production ratio decline - The lower ratio of saleable coal production to ROM coal production was due to an increase in ROM coal that could not be fully processed [29][31] Question: Dividend and capital management considerations - The company follows a dividend framework based on NPAT or free cash flow, with decisions to be made at the February board meeting [32][33] Question: Hypothetical scenario regarding U.S. coal imports - Australia has not historically supplied coal to the U.S. mainland, and the U.S. is unlikely to become a coal import market for Australia [38]
YANCOAL AUS(03668) - 2025 Q4 - Earnings Call Transcript