Highlights

• Yancoal Australia Limited delivered revenue of AU$3.024 billion in 1H 2026, up 13%, while operating EBITDA increased 29% to AU$767 million.
• Attributable saleable coal production reached a first-half record of 19.8 million tonnes, up 5%, while attributable sales increased 20% to 19.8 million tonnes.
• Yancoal ended June with AU$2.094 billion in cash and no interest-bearing loans, while declaring a fully franked AU$92.4 million interim dividend.

Stronger Sales and Pricing Drive Earnings GrowthYancoal Australia (ASX: YAL) delivered a solid financial performance in the first half of 2026, supported by higher coal sales volumes and improved realised prices. Revenue climbed 13% to AU$3.024 billion, while operating EBITDA rose 29% to AU$767 million, representing a 24% EBITDA margin. Operating profit increased 42% to AU$328 million. However, reported profit after tax fell to AU$17 million after AU$272 million of non-operating items weighed on statutory earnings. Most of these adjustments were non-cash, including a AU$188 million foreign-exchange retranslation loss and a AU$49 million Middlemount impairment.Record Production Strengthens Operating MomentumOperationally, Yancoal recorded 32.5 million tonnes of ROM coal production and 25.7 million tonnes of saleable production on a 100% basis. Attributable saleable production increased 5% to 19.8 million tonnes, establishing a first-half record. Thermal coal sales rose 22% to 16.8 million tonnes, while metallurgical coal sales increased 9% to 3.1 million tonnes.

Average realised coal prices improved 3% to AU$154 per tonne, comprising AU$143 per tonne for thermal coal and AU$216 per tonne for metallurgical coal. Cash operating costs increased to AU$96 per tonne, primarily reflecting higher diesel prices, but Yancoal still generated an implied operating cash margin of AU$42 per tonne.Strong Balance Sheet Supports Kestrel Acquisition and DividendsYancoal remained in a strong financial position, closing the half with approximately AU$2.1 billion in cash and only AU$60 million of lease liabilities, with all interest-bearing loans fully repaid. The company plans to allocate between US$650 million and US$850 million of cash toward its proposed acquisition of an 80% interest in the Kestrel Coal Mine, while still anticipating a surplus cash position following the transaction.

The Board also declared a fully franked interim dividend of AU$0.070 per share, representing a total distribution of AU$92.4 million, payable on 18 September 2026.2026 Outlook Remains ConstructiveManagement expects attributable saleable coal production to reach 36.5–40.5 million tonnes in 2026, with output likely to finish in the upper half of the guidance range. Cash operating costs are expected at AU$90–98 per tonne, while capital expenditure guidance has been lowered to AU$600–750 million, primarily due to expenditure being deferred into 2027.

Looking beyond 2026, Yancoal remains focused on maintaining large-scale, competitive production, disciplined cost management and balanced capital allocation. The Kestrel acquisition could further strengthen the company’s metallurgical coal exposure, while constrained new thermal coal supply and growing metallurgical coal demand from India and Southeast Asia provide supportive longer-term industry fundamentals.

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