Yancoal Australia achieved its production, unit cost of production and capital expenditure targets in 2019. The company delivered a Profit After Tax of $719 million from revenue A$4.46 billion and the total dividend for the year was $417 million.
2019 FULL YEAR Results HIGHLIGHTS
Attributable Saleable Production was 35.6Mt; an 8% uplift over FY18. The Sales Volume of attributable production was also 35.6Mt, with Yancoal’s sales split (equity share) being 30.1Mt thermal coal (28.4Mt in FY18) and 5.5Mt metallurgical coal (5.1Mt in FY18).
Cash Costs per tonne, excluding royalties, were $61/tonne ($63 in FY18). The company continued to offset cost inflation through the active pursuit of operational efficiencies across the combined asset suite and maximising volumes from lower-cost operations.
Yancoal realised an average price of $100/tonne for thermal coal products ($123/tonne in FY18) and $167/tonne for metallurgical coal products ($182/tonne in FY18), representing an overall average-sales-price of $111/tonne ($132/tonne in FY18) on ex-mine sales excluding purchased tonnes.
Revenue of $4.46 billion was down from the previous year ($4.85 billion in FY18). Increased sales volumes and weaker AUD:USD exchange rate were more than offset by a lower realised average USD sales prices; a consequence of shifting supply and demand conditions globally. Profit Before Tax was $767 million compared to $1,172 million in FY18.
Reduced coal prices lowered the Company’s Net free cash flow 12% to $1.16 billion compared to FY18; however, the gearing ratio improved to 29% by the end of 2019.
The Board declared a $280 million final dividend or $0.2121/share in recognition of the ongoing support of Yancoal’s shareholders and future confidence in the business and its cashflows. Combined with the interim dividend, the total dividend for 2019 was $0.3156/share; a payout ratio of 58% relative to full-year Profit After Tax.