Yancoal Australia Ltd (Yancoal) released its March-quarter 2026 production report, highlighting solid operational performance, stable pricing and continued financial strength, while flagging higher diesel costs and the pending acquisition of an 80 % stake in Kestrel Coal Mine.
Operational performance • Run-of-mine (ROM) output reached 15.00 Mt (100 % basis), down 1 % year-on-year (y/y) and 21 % quarter-on-quarter (q/q). • Saleable coal production totalled 11.90 Mt (100 % basis) and 9.00 Mt on an attributable basis, slipping 5 % y/y in line with the company’s planned front-loaded overburden removal programme. • Attributable coal sales were 8.20 Mt, broadly flat y/y but 24 % lower q/q due to shipment timing. • The underground-weighted safety performance improved, with a 12-month rolling TRIFR of 5.77 versus 6.14 at end-4Q25 and well below the industry average of 9.62.
Pricing and cash generation • The overall realised coal price averaged A$146/t: thermal coal realised A$134/t (-3 % q/q) and metallurgical coal A$213/t (+5 % q/q). • Average seaborne indices rose 5-14 % during the quarter; Yancoal expects the benefit to flow into realised prices from 2Q26 because of contract lags. • Cash on hand stood at A$2.01 billion as at 31 March 2026.
Cost and guidance • Higher fuel is pressuring costs: diesel accounted for about A$7/t of direct mining spend in 2025 and is now tracking above budget. Management cautions full-year cash operating costs could approach the upper end of the A$90-98/t guidance range. • FY26 guidance is unchanged at 36.5-40.5 Mt attributable saleable production and A$750-900 million in attributable capital expenditure.
Mine-site highlights • Moolarben: 4.90 Mt ROM (-11 % y/y) after a planned longwall move; open-cut performance exceeded expectations in March. • Mount Thorley Warkworth: 3.20 Mt ROM (-13 % y/y) with strong March output; upcoming focus on excavator reliability. • Hunter Valley Operations: 4.40 Mt ROM (+5 % y/y), beating budget on higher fleet utilisation. • Queensland assets Yarrabee and Middlemount recovered quickly from ex-Tropical Cyclone Koji, while Ashton longwall progressed without major interruption.
Strategic developments • On 14 April 2026, Yancoal agreed to acquire an 80 % interest in Kestrel Coal Mine for US$1.85 billion, funded through existing cash plus a new US$1.20 billion five-year syndicated loan and a US$200 million working-capital facility. The deal will lift metallurgical coal’s share of group volumes to 22 % on a pro-forma 2025 basis. Completion is targeted for late 3Q26.
Upcoming events A conference call for analysts and investors is scheduled for 21 April 2026 at 11:00 a.m. Sydney / 9:00 a.m. Hong Kong, accessible via webcast at the link provided in the company’s announcement.