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Investors

Under challenging global market conditions, we have reduced operating costs, implemented operational efficiencies and established new blending opportunities to create greater value for our existing assets and future projects.

2015 FULL YEAR Results

Yancoal Australia Ltd (Yancoal) further improved operational efficiencies and delivered significant costs savings during 2015, reporting a Full Year 2015 loss after income tax for the year ended 31 December 2015 of $291.2 million.

The loss for 2015 reflects the continued impacts of low thermal and metallurgical coal prices throughout the reporting period, driven by global market oversupply and subsequent impacts of China’s National Development and Reform Commission’s introduction of new quality coal restrictions for imports into specific regions.

Yancoal delivered a negative operating EBITDA of $0.4 million.

Yancoal responded to the sustained global market constraints via the maximising of blending opportunities, continued restructure of its underground mines, consolidation of back office and shared services, and management of existing take or pay arrangements.

Cost reduction strategies continued to be successfully implemented across all sites and major projects in accordance with Yancoal’s long term business and investment strategy.

Yancoal achieved strong production of 20.8 million tonnes Run of Mine (ROM) coal (equity share) and 15.2 million tonnes saleable product coal (equity share).

Financial performance

The loss after income tax for the year ended 31 December 2015 amounted to $291.2 million (31 December 2014:$353.5 million).

The loss for 2015 reflects the continued impacts of low thermal and metallurgical coal prices throughout the reporting period, with opportunities for price improvement increasingly limited by the global market’s prolonged oversupply and subsequent impacts of China’s National Development and Reform Commission’s introduction of new quality coal restrictions for imports into the regions of Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta.

Yancoal responded to the sustained global market headwinds via the maximising of blending opportunities, continued restructure of its underground mines, consolidation of back office and shared services, reduction in operational costs and management of existing take or pay arrangements.

Cost reduction strategies continued to be successfully implemented across all sites and major projects, in accordance with Yancoal’s long term business and investment strategy.