Yancoal and Whitehaven Coal have welcomed strong coal production despite various delays impacting operations.
Yancoal
Yancoal produced 13.9 million tonnes (Mt) of run-of-mine (ROM) coal during the June quarter with 8.6Mt in attributable coal sales, a notable increase from the previous quarter’s 8.3Mt.
The company’s coal volumes were in line with the previous quarter, while saleable volumes were slightly lower following wet weather delays.
However, Yancoal produced 8.2Mt of attributable saleable coal, an 18 per cent increase compared to the first half of 2023. The company said the result demonstrated the strong recovery it has achieved over the last 12 months.
Yancoal also welcomed a $181 per tonne average realised coal price and a $318 million increase in cash balance.
“Yancoal continues to generate robust cash inflows,” Yancoal chief executive officer David Moult (CEO) said. “The $181/tonne price realised for the half was roughly double the cash operating cost we are targeting this year.
“Largely as expected, the production rate in the first half sees us tracking at the low end of the (2024) full year guidance range (35–39Mt). However, as in 2023, production volumes are expected to increase in the second half.
“The company retains a strong financial position, holding cash of $1.55 billion at the end of June.”
Moult said the June quarter saw thermal coal markets record increased export supply from Australia and Indonesia.
“Despite this, thermal coal markets appear relatively balanced,” Moult said. “Coal indices varied week to week, but the average price remains well supported.
“We see Yancoal’s large-scale, low-cost coal production profile as well suited to the current coal market conditions. Having no interest-bearing loans, a large net cash position and robust operating margins provides us with the capacity to pursue suitable growth opportunities as they arise.”
Whitehaven Coal
Whitehaven successfully completed the transition of its newly acquired Daunia and Blackwater coal mines in Queensland, both of which were previously owned by BHP.
During the June quarter, Daunia produced 1.3Mt of ROM coal. Whitehaven said Daunia production was impacted by delays such as the rail provider taking longer than expected to transfer assigned rail paths from BHP to Whitehaven.
Despite the disruptions, the operation produced 1.0Mt of saleable coal, with sales equalling 900,000 tonnes (t). As of the end of June, Daunia holds 300,000t in stocks.
Blackwater welcomed a strong 3.6Mt in ROM coal production and 2.3Mt in sales, with Whitehaven progressing a potential sell down of around 20 per cent of the operation to global steel producers as part of a strategic joint venture.
“I am pleased to report a strong first quarter of production from the newly acquired Queensland operations,” Whitehaven managing director and CEO Paul Flynn said.
“Transition and integration activities progressed smoothly during the first quarter of ownership and we are already seeing the benefits of diversification and exposure to the supply-constrained metallurgical coal market.”
Whitehaven’s New South Wales operations produced 4.9Mt of ROM coal during the quarter, a 13 per cent increase quarter on quarter.
The company said the result was underpinned by improved performance at the Narrabri mine, which produced 1.5Mt, a 129 per cent increase from the prior quarter.
“In New South Wales, we finished the year with a strong result from our open cut mines and improved performance from the Narrabri underground mine,” Flynn said. “Overall, production and sales outcomes were well within guidance for the year.”
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