No interim dividend has been proposed or declared for the half year ended 30 June 2024.
Share price went down in August when YAL report said about the Profit loss...
EPS down : 57%
The Group’s coal sales revenue is typically recognised on a Free on Board (“FOB”) basis when coal is loaded at the load port in Australia.
REVENUE HALF-YEAR ENDED 30 JUNE 2024 2023 CHANGE $M $M (%) Ex-mine coal sales10 2,980 4,003 (26%) Sale of purchased coal 47 (154) (131%) Other 3 4 (25%) Sale of coal 3,030 3,853 (21%) Sea freight 44 42 5% Royalty revenue 12 12 —% Other 13 17 (24%) Revenue 3,099 3,924 (21%) Total revenue decreased by 21% from $3,924 million in 1H 2023 to $3,099 million in 1H 2024 primarily due to a 21% decrease in coal sales revenue from $3,853 million in 1H 2023 to $3,030 million in 1H 2024. With respect to the decrease in coal sales revenue,
YAL have good Governance: Governance is rigorous .... must be the computer / AI related!!
GOVERNANCE Yancoal has developed rigorous governance processes to drive its Sustainability performance across the business. The Enterprise Risk Management framework is a key platform and includes the assessment and mitigation of material business risks, including social and environmental risks and the risks associated with climate change and the progressive transition to a lower carbon economy.
The HSEC Charter includes oversight of compliance with modern slavery regulations as a responsibility of the HSEC Committee. This will increase the governance and supervision of Yancoal's modern slavery risk.
The Board has ultimate responsibility for the oversight and approval of risk management and financial investment decisions, including those relating to climate change.
The Board regularly considers how climate change may affect physical, regulatory, commercial, and operating environments. These considerations inform the development of medium-tolong-term goals and strategies.
YAL summary:
Financial Performance:
- Revenue: The revenue decreased by 21%, from $3,976 million in the first half of 2023 to $3,138 million in 2024, mainly due to lower coal prices globally.
- Profit: Net profit after tax also decreased by 57%, from $973 million to $420 million.
- Earnings Per Share: Basic earnings per share dropped significantly by 57%, from 73.7 cents to 31.9 cents.
- Dividends: No interim dividend was declared for the half-year ended June 2024.
2. Coal Production:
- Saleable Production: There was a 16% increase in saleable coal production, reaching 21.6 Mt (million tonnes), compared to 18.6 Mt in 2023.
- ROM (Run-of-Mine) Production: This increased by 7%, from 26 Mt to 27.9 Mt, demonstrating improved operational efficiency.
- Coal Sales Volume: Total coal sales volume rose by 17%, driven by an 18% rise in attributable saleable production.
3. Market and Pricing:
- Thermal Coal: Sales revenue of thermal coal fell due to a 39% drop in average selling price from A$256 to A$156 per tonne.
- Metallurgical Coal: Sales revenue also decreased, as the selling price fell by 18%, from A$389 to A$319 per tonne.
- China and Japan: Significant shifts in export revenue destinations, with a notable increase in sales to China, from 15% to 33% of total coal sales revenue, and a decrease in revenue from Japan.
4. Operational Challenges and Improvements:
- Weather Conditions: Drier weather in 2024 enabled improved coal production, following challenges due to rain in 2023.
- Cost Control: Average operating costs per tonne decreased by 7%, from A$109 to A$101, helped by higher production volumes.
5. Environmental and Regulatory Factors:
- The report discusses Yancoal's focus on reducing emissions, improving environmental management, and complying with Australian and state-level regulations related to emissions reduction.
- Release Date: 19/08/24 18:58 An awkward accouncement released after Hrs..
- YAL share price at Open could tank..
Revenue of $3.14 billion, compared to $3.98 billion in 1H 2023;
the 37% decrease in realised coal price to A$176 per tonne1 exceeded the benefit of a 17% increase in attributable coal sales
Operating cash costs of $101 per tonne (exc. Government royalties), closely linked to the production volumes and inflation factors
Profit Before Tax down (59%) Ouch!!!!, Below:
* The 2024 guidance is for 35-39 million tonnes of attributable saleable production.
Outlook:
Greg Fletcher. I am the Co-Vice Chairman, an Independent Non-executive Director of Yancoal, and Chair of the Audit and Risk Management Committee
This year, we aim to produce at a level similar to the second half of 2023. The 2024 guidance is for 35-39 million tonnes of attributable saleable production. Output will vary quarter-to-quarter due to mine plan sequences, longwall moves and planned maintenance, and there will be a second half weighting to the production profile.
We aim to bring the cash operating costs per tonne down from the full-year 2023 level, and are focused on output given the direct relationship between the volumes we produce and the per tonne cash operating costs we report.
We have guided to Cash operating costs of $89/tonne - $97/tonne. Overall, it was another very strong performance by Yancoal in 2023. We finished the year with great operational momentum and a very strong financial position. That completes the 2023 review, I would like to hand back to Greg Fletcher for the remainder of the meeting.
We have distributed to shareholders A$2.5 billion of unfranked and A$1.8 billion of fully franked dividends since 2018.
Return (inc div) 1yr: 54.28% 3yr: 74.02% pa 5yr: 29.40% pa
Ex Divi: 5th Sept 2024 , Gross Div: 15.37%
5Yr Coal price
Dividends: The resource seactor generally been good. Will have to reduce the'payout Ratio'
Free Cash flow is drying up:
Recalibrate the business!
... .......................... 
March Quarter 2024 (1Q 2024) A$180/t average realised coal price.
$260 million increase in cash holding.
$1.66 billion cash balance at 31 March 2024.
1 14.0Mt ROM coal production (100% basis). 11.3Mt Saleable coal production (100% basis).
8.8Mt Attributable saleable coal production.
8.3Mt Attributable coal sales
The overall realised coal price declined 8% from 4Q 2023, comprising a 12% decline in the realised thermal coal price and a 14% uplift in the realised metallurgical coal price. The realised thermal coal price was in line with coal index trends while the realised metallurgical coal price was better than the relevant indices due to higher priced carryover being supplied within the period.
But for the holders:
The company retains a strong financial position. We held $1.66 billion in cash at the end of March. Of this sum, $429 million goes to paying the fully franked 2023 Final dividend (A$0.325/share) on 30th April.
outlook 2024
No BIG graphics of the Revenue.. Because - Revenue 2023 3,976m VS 2022 4,879m down (20%)
But the dividend payment today is 37cps ( annually 107cps ) (Better than Spodumene!!!)
Divi' penciled in a Forecast 2024 annual 132cps so plenty of cash flow.
Ex Dividend: 5/9/2023
While looking at Dividends
https://strawman.com/reports/WHC/wtsimis
#wtsimis
2023 Interim dividend allocation is $489 million, A$0.3700/share (fully franked).
• The ~A$1.23/share 2022 Total dividend was a 20% dividend yield on the A$6.06/share year end share price.
• Franking credits of $1.4 billion available at 30 June 2023 for subsequent reporting periods, prior to the proposed $489 million interim dividend, assuming an income tax rate of 30%
Get the Dividend still time: Forecast Ex Div Date: 05/09/2023 (19 days away)
The Important Stuff below:
Trend is up:
They need coal..Burn, Burn..
Return (inc div) 1yr: 16.63% 3yr: 53.09% pa 5yr: 14.96% pa
COAL SALES AND MARKET OUTLOOK During 2Q 2023, attributable mine production sales of 8.5Mt were the same as attributable saleable coal production, keeping inventory levels comparable to past periods. The sales volume includes 0.17Mt supplied to domestic power generators under the NSW Government domestic coal reservation directions. Yancoal purchased additional coal for blending to optimise the overall product mix and realised prices.
Dividend machine:
Coal Bottomed?
Dividend History:
