Yancoal Australia (03668.HK) announced that the average coal sales price in the June quarter 2024 (Q2 2024) was 181 Australian dollars/tonne. Cash balance increased by 0.318 billion Australian dollars. The cash balance as of June 30, 2024 was 1.55 billion Australian dollars. The raw coal production volume was 13.9 million tonnes at 100% base. The commodity coal production volume was 10.3 million tonnes at 100% base. Equity commodity coal production volume was 8.2 million tonnes. Equity coal sales volume was 8.6 million tonnes.

CEO comment: "Yancoal Australia continues to generate strong cash flow. In the first half of the year, the coal sales price reached 181 Australian dollars/tonne, roughly twice the cash operating cost target for this year.

In line with expectations, based on the production rate in the first half of the year, we are at the lower end of the annual guidance range. However, like 2023, production is expected to increase in the second half of the year.

The company's financial position remains robust, with a cash holding of 1.55 billion Australian dollars as of the end of June, which has deducted 0.429 billion Australian dollars of 2023 full exempt period-end dividends (0.325 Australian dollars/share) paid on April 30. Like the previous quarter, the export supply of thermal coal markets in Australia and Indonesia has increased. Nevertheless, the thermal coal market remains relatively balanced. The coal index changes weekly, but the average price is still solidly supported.

We believe that Yancoal Australia's large-scale, low-cost coal production model is very suitable for the current coal market situation. Yancoal Australia's interest-free loans, huge net cash position, and stable operating profit margin enable us to seize suitable growth opportunities.