Yancoal has reported a record first-half (1H) attributable saleable coal production of 19.8 million tonnes (Mt), representing a five per cent increase on the 18.9Mt produced during the same period in 2025 and putting the company on track for a new full-year production record.
Yancoal said the strong operational performance, combined with higher realised coal prices, helped drive revenue up 13 per cent to $3.02 billion and operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 29 per cent to $767 million.
The company’s realised coal price increased three per cent to $154 per tonne, while cash operating costs rose three per cent to $96 per tonne.
“Despite the higher diesel costs our cash operating costs were just three per cent higher than 1H 2025, and we expect to keep them within the guidance range,” Yancoal chief executive Sharif Burra said.
“We are optimistic we can deliver strong operational performance in the second half and achieve robust realised coal prices.”
Total saleable production on a 100 per cent basis rose four per cent to 25.7Mt. Operating profit also increased 42 per cent to $328 million, although profit after tax fell 90 per cent to $17 million following $272 million in non-operating items, including $188 million associated with the annual accounting of US-dollar-denominated loans.
Yancoal has maintained its 2026 attributable saleable production guidance of 36.5-40.5Mt, with operations expected to deliver in the upper half of the range. However, higher diesel prices have pushed cash operating costs towards the upper half of the $90-98 per tonne guidance range.
The company has also reduced its attributable capital expenditure guidance to $600-750 million, down from $750-900 million, primarily due to expenditure being deferred to 2027.
Yancoal ended the period with $2.1 billion in cash and will use approximately half of that balance to fund its US$1.85 billion acquisition of the Kestrel coal mine, with debt funding the remainder.
The company said the transaction would support growth without equity dilution, while still allowing it to return $0.07 per share to shareholders through a fully franked interim dividend.