Yancoal has delivered record coal production in 2025, lifting volumes despite softer international coal prices and positioning itself strongly for the year ahead.
Run-of-mine (ROM) coal production reached 67.0 million tonnes (Mt) on a 100 per cent basis, up seven per cent from 2024. Saleable production increased six per cent to 50.8Mt, while attributable saleable production rose five per cent to 38.6Mt, landing in the top quartile of guidance.
The performance was underpinned by the company’s highest first-half output in five years, followed by a record fourth quarter.
Revenue totalled $5.95 billion, down 13 per cent year-on-year, reflecting a 17 per cent fall in realised coal prices to $146 per tonne amid well-supplied international markets.
Despite pricing pressure, the company generated operating EBITDA of $1.44 billion, delivering a 24 per cent margin. Cash operating costs, excluding government royalties, declined by $1 per tonne to $92 per tonne, below the mid-point of guidance. The reduction was driven by higher volumes and productivity gains, partially offset by increased demurrage costs mid-year.
Yancoal finished the year with a cash balance of $2.1 billion as at 31 December 2025.
Chief executive officer Sharif Burra said the company aimed to carry its momentum into 2026.
“We delivered record coal production in 2025 that was close to the top of our guidance range,” Burra said.
“These stronger volumes offset inflationary factors and delivered a one per cent decrease in our cash operating costs. We aim to carry this operational momentum into 2026.
“The top end of our 2026 guidance range is near the annual operational limits of our mines, while the lower end allows for unforeseen issues. Despite remaining focused on cost control, we do expect some incremental cost inflation this year,” he said.
For 2026, attributable saleable production is forecast at 36.5–40.5Mt. Cash operating costs are expected to range between $90–98 per tonne, while attributable capital expenditure is guided at $750–900 million, including expenditure deferred from 2025.
Yancoal’s Tier 1 Hunter Valley assets, including the Hunter Valley operations joint venture and Mount Thorley Warkworth, remain cornerstone contributors. In Queensland, its metallurgical coal assets provide portfolio balance alongside thermal coal production.
Productivity initiatives across open cut and underground operations are expected to support margins in a potentially softer pricing environment.
