Yancoal Strengthens Moolarben Stake as Coal Output Holds Firm in Q3

Stable Production Amid Weather Challenges

Yancoal’s September quarter 2025 results show a resilient operational performance despite mid-quarter rainfall disruptions. The company reported 15.8 million tonnes of run-of-mine coal production and 12.3 million tonnes of saleable coal, consistent with the previous quarter. Attributable coal sales rose to 10.7 million tonnes, recovering volumes delayed by adverse weather earlier in the year.

Pricing and Market Conditions

The average realised coal price settled at A$140 per tonne, slightly below the prior quarter’s A$142, reflecting marginal declines in metallurgical coal prices and steady thermal coal pricing. This aligns with subdued global demand and persistent oversupply, particularly in thermal coal markets. Yancoal’s pricing tracks major indices such as GlobalCOAL NEWC and API5, which showed modest improvements but remain under pressure from excess supply and cautious demand from key Asian markets.

Leadership and Strategic Moves

September saw the appointment of Sharif Burra as CEO, bringing 28 years of mining experience and a focus on operational excellence. Burra highlighted that production is tracking above the mid-point of guidance and emphasized cost discipline amid external cost pressures. Notably, Yancoal increased its stake in the Moolarben Joint Venture to 98.75%, a move expected to boost attributable production and revenue from this low-cost asset, although this is not yet reflected in 2025 guidance.

Safety and Operational Highlights

Safety remains a priority, with the Total Recordable Injury Frequency Rate improving to 5.71, well below the industry average. Operationally, key sites like Moolarben and Mount Thorley Warkworth delivered solid performances despite weather and equipment challenges. The Hunter Valley Operations notably increased saleable coal production by 14% over the prior quarter, supported by productivity improvements.

Outlook and Development Projects

Yancoal maintains its 2025 operational guidance, expecting attributable saleable production between 35 and 39 million tonnes and cash operating costs around the mid-point of the $89-97 per tonne range. Development projects, including feasibility studies for the Mount Thorley Warkworth underground mine and extensions at Hunter Valley Operations and Moolarben, continue to progress. The company is also evaluating renewable energy initiatives, reflecting a broader strategic outlook.