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Investors

2017 was a year of transformation for Yancoal Australia, completing the strategic acquisition of Coal & Allied to become Australia's largest pure-play coal producer.

2017 FULL YEAR Results HIGHLIGHTS

Yancoal 's transformational acquisition of 100% of Coal & Allied Industries Limited (“Coal & Allied”) from Rio Tinto Limited (the “Coal & Allied Acquisition”) for US$2.69 billion1 in value drove immediate production and financial gains.

Profit before tax of $311 million for the year ended 31 December 2017, up $623 million on the year prior.

Total Operating EBITDA of $988 million before tax, up $816 million on the year prior, including a four-month equity contribution from Coal & Allied ($290 million before tax), following completion of the acquisition 1 September 2017.

Reduced gearing ratio to 47.3% (31 December 2016: 77.9%)

Achieved total saleable coal production of 31.45Mt (23.44Mt equity basis2) for the year (31 December 2016: 15.99Mt equity share).

Achieved total Run of Mine (“ROM”) coal production of 41.12Mt (30.55Mt equity share2) for the year (31 December 2016: 21.2Mt equity share).

Conducted a pro-rata renounceable entitlement offer (“Entitlement Offer”) of 23,464,929,520 fully paid ordinary shares to raise US$2.35 billion, and an associated placement of 1,500,000,000 fully paid ordinary shares to raise a further US$150 million to support the funding of the Coal & Allied Acquisition.

Entered into a binding agreement to establish a 51:49 unincorporated joint venture with Glencore Coal Pty Ltd (“Glencore”) in relation to Hunter Valley Operations (“HVO JV”) following completion of the Coal & Allied Acquisition.3

Commenced longwall production at the new Moolarben Stage Two underground mine (first longwall coal in November 2017) on time and below budget.

NOTES:

[1] Comprising US$2.45 billion cash payable on completion, US$240 million in future non-contingent royalty payments over five years following completion and a coal price linked contingent royalty.

[2] Includes only 51% interest in Hunter Valley Operations (HVO) on the basis that Glencore will be entitled to a 49% interest in HVO with economic effect from 1 September 2017 on implementation of the HVO JV. The HVO JV remains subject to Glencore achieving all required approvals.

[3] Glencore to pay cash consideration of US$1,139 million for 49% of HVO, of which US$710 million will be paid to Mitsubishi Development Pty Ltd (“MDP”) and US$429 million paid to Yancoal, plus a 27.9% share of US$240 million of non-contingent royalties and 49% of HVO contingent royalties payable by Yancoal in respect of the Coal & Allied Acquisition. The HVO JV remains subject to Glencore achieving all required approvals.