Yancoal chief executive officer David Moult has applauded the Yancoal team’s 19 per cent increase in run-of-mine coal production and 35 per cent reduction in total recordable injury frequency rate for 2023.
“At the start of the year, we needed to rebuild mining inventory to underpin a sustainable return to previous years’ production levels,” Moult said.
“The plans took time to implement, but in the second half attributable saleable coal production jumped 32 per cent and cash operating costs fell 21 per cent. We expect to carry this operational momentum into 2024.
“Production volumes will vary each quarter, with higher output (and resulting lower unit costs) likely in the second half.”
Yancoal recorded revenue of $7.8 billion for the 2023 year, a decrease from the $10.5 billion recorded in 2022. The fall was due to the 39 per cent decrease in realised coal price to $232 per tonne.
However, operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $3.5 billion and EBITDA margin of 45 per cent demonstrated the quality of Yancoal’s assets in the face of retreating coal prices.
“Coal markets appear relatively well balanced, with seasonal or temporary supply and demand factors poised to determine short-term price trends,” Moult said.
“This year, like past years, we aim to maximise operating cashflow by balancing volume, costs, coal quality and capital expenditure.”
Yancoal has also welcomed a new independent non-executive director to its ranks.
Debra Bakker will join the board from March 1, and will also be appointed as chair of the nomination and remuneration committee and as a member of the audit and risk management committee.
Bakker’s experience encompasses precious metal, base metal and critical mineral mining, oil and gas development, shipping logistics, commodity trading and corporate financing.
“We welcome Ms Bakker to her new role, and anticipate her broad ranging experience will prove invaluable as Yancoal pursues further success,” Yancoal chairman Gang Ru said.
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