Yancoal has delivered record coal production for the full-year ending December 31, 2025 but earnings for the period sharply fell as international coal prices impacted revenue.
The company reported record coal production of 67 million tonnes for the full-year period, up 7 per cent from 62.7 million tonnes in 2024.
Saleable coal production on a 100 per cent basis rose 6 per cent to 50.8 million tonnes from 47.8 million tonnes. Attributable saleable production came in at 38.6 million tonnes, up 5 per cent from 2024 and in the top quartile of guidance.
However, revenue was down 13 per cent year over year to AU$5.95 billion, reflecting a 17 per cent decrease in realised coal prices to AU$146 per tonne.
Yancoal CEO Sharif Burra said: “We delivered record coal production in 2025 that was close to the top of our guidance range.
“These stronger volumes offset inflationary factors and delivered a 1 per cent decrease in our cash operating costs. We aim to carry this operational momentum into 2026.
“The top end of our 2026 guidance range is near the annual operational limits of our mines, while the lower end allows for unforeseen issues. Despite remaining focused on cost control, we do expect some incremental cost inflation this year.”
Yancoal ended 2025 with a cash balance of AU$2.1 billion, down from AU$2.46 billion in 2024.
The board declared a final dividend of AU$161 million, or 12.2 cents per share, which combined with the interim dividend is an 55 per cent payout ratio for 2025.
The company aims to carry operational momentum into 2026, with attributable saleable production guidance at 36.5 million to 40.5 million tonnes. Cash operating cost guidance for 2026 is A$90/tonne to A$98/tonne, allowing for some cost inflation, while attributable capital expenditure is forecast at AU$750 million to AU$900 million, including expenditure deferred from 2025.
“In 2026, we target continued strong operational performance and, should suitable circumstances arise, judiciously utilise our cash for the benefit of shareholders,” Burra said.
