Yancoal Australia posts smaller annual profit on fall in coal prices
Yancoal Australia forecast flat production estimates for fiscal 2025 on Thursday while reporting a 33% fall in annual profit due to lower coal prices.
The coal miner expects attributable saleable coal production of 35 to 39 metric tonnes in fiscal 2025, in line with 36.9-million tonnes of attributable saleable coal production recorded in 2024.
"The production and cash cost guidance ranges remain the same as last year," acting CEO Ning Yue said in a company statement.
"Cost inflation is a constant challenge in the coal sector, mining industry and broader economy," he added.
Coal prices have slumped over the past six months as China's production outpaced demand, resulting in swelling inventories and a price plunge.
Despite the typical rise in fossil fuel demand during the winter months due to increased power needs, surplus stockpiles and sluggish economic growth have kept prices under pressure.
Yancoal, which announced a surprise exit of its CEO David Moult in January, said overall average ex-mine selling price of coal fell by 24% to A$176 per tonne in 2024.
The firm reported a net profit after income tax attributable (before non-recurring items) of A$1.22-billion ($777.51-million) for the year, compared to A$1.82-billion a year earlier.
"To counter the anticipated short-term volatility in thermal coal price indices, we continue to optimise the product quality and volume we place into the market and actively seek to expand our customer base and sales to new markets," the miner, which is majority-owned by China-based Yankuang Energy Group, said in its statement.
Yancoal reported a 12% decline in its revenue for fiscal 2024 to A$6.86-billion from A$7.78-billion in fiscal 2023.
The miner declared a final dividend of 52 Australian cents per share for the year.
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