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Yancoal Australia Ltd. (AU:YAL)
ASX:YAL
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Yancoal Australia (YAL) AI Stock Analysis

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AU:YAL

Yancoal Australia

(Sydney:YAL)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
AU$6.00
▲(7.33% Upside)
Yancoal Australia Ltd. has a strong financial foundation with low debt and high profitability, supported by an attractive valuation. However, declining revenues and coal prices, along with logistical challenges, pose risks. The technical indicators suggest a neutral market sentiment.
Positive Factors
Operational Efficiency
Achieving the best operational performance in five years indicates strong management and operational efficiency, which can lead to sustained profitability and competitive advantage.
Financial Position
A strong cash position and lack of interest-bearing debt enhance financial stability, providing flexibility for strategic investments and weathering market downturns.
Production Growth
Increased production capacity supports revenue potential and market share expansion, crucial for long-term growth in a competitive industry.
Negative Factors
Revenue Decline
Significant revenue contraction may indicate challenges in market demand or pricing power, potentially impacting long-term profitability and growth.
Coal Price Decline
Falling coal prices can pressure margins and reduce revenue, posing a risk to financial performance if the trend persists over the long term.
Global Demand Challenges
Reduced demand from key markets due to increased domestic production and alternative energy sources can limit growth opportunities and affect future sales.

Yancoal Australia (YAL) vs. iShares MSCI Australia ETF (EWA)

Yancoal Australia Business Overview & Revenue Model

Company DescriptionYancoal Australia Ltd engages in the exploration, development, production, and marketing of metallurgical and thermal coal in Australia, Japan, Singapore, China, South Korea, Taiwan, Thailand, and internationally. It owns 95% interests in the Moolarben coal mine located in the Western Coalfields of New South Wales; 100% interests in the Stratford Duralie mines located within the New South Wales Gloucester Basin; 100% interests in the Yarrabee mine located to the northeast of Blackwater in Central Queensland's Bowen Basin; and 80% interests in the Mount Thorley mine and 84.5% interests in the Warkworth mine located in the Hunter Valley region of New South Wales. In addition, it owns 100% interest in the Ashton mine located in the Upper Hunter Valley region of New South Wales; the Austar mine located in New South Wales; and 50% interest in the Middlemount mine located in the Queensland's Bowen Basin, as well as holds interest in the Cameby Downs mine located in the Southeast Queensland, and the Hunter Valley coal mine located in the New South Wales. The company was incorporated in 2004 and is based in Sydney, Australia. Yancoal Australia Ltd is a subsidiary of Yankuang Energy Group Company Limited.
How the Company Makes MoneyYancoal Australia generates revenue primarily through the sale of coal, which includes both thermal coal used for electricity generation and metallurgical coal utilized in steel manufacturing. The company has established key revenue streams by supplying coal to various markets, including Asia, where demand for energy and steel production is high. Additionally, Yancoal benefits from long-term contracts with major customers, ensuring stable cash flow. The company also engages in strategic partnerships and joint ventures, which enhance its market position and operational efficiency. Factors such as global coal prices, production costs, and demand from key markets significantly influence Yancoal's earnings.

Yancoal Australia Earnings Call Summary

Earnings Call Date:Aug 19, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Yancoal's strong operational performance and financial position but was offset by challenges related to decreased coal prices and weather-related disruptions affecting sales volumes. The company remains optimistic about navigating the cyclical low in coal prices.
Q2-2025 Updates
Positive Updates
Best First Half Operational Performance in Five Years
Yancoal reported its best first half operational performance in the past five years, with ROM coal and attributable saleable coal volumes 15% to 16% ahead of last year.
Increase in Coal Production
Total ROM coal production increased by 12% compared to the first quarter of the year and 23% more than the second quarter last year, with saleable coal production up 15% from the second quarter last year.
Strong Financial Position
Yancoal ended the quarter with a cash balance of $1.8 billion and no interest-bearing debt, after distributing a $687 million dividend.
Reduced Injury Frequency Rate
Total recordable injury frequency rate reduced to 6.32, below the industry weighted average of 7.93.
Negative Updates
Sales Volume Impacted by Weather-Related Closure
A significant volume of sales slipped from the second quarter to the third due to a temporary weather-related closure at the Port of Newcastle, impacting revenue and cash generation.
Decreasing Coal Prices
Coal prices continued to decrease during the quarter, with key indices down between 2% and 12% compared to the previous quarter.
Challenges in Global Coal Demand
Declines in coal imports from major regions like China, India, and Japan due to increased domestic production, weather impacts, and alternative energy sources.
Company Guidance
During the Yancoal Second Quarter Production Report Conference Call, several metrics and insights about the company's performance in Q2 of 2025 were shared. The company reported a 15% to 16% increase in ROM coal and attributable saleable coal volumes compared to the previous year. Yancoal's production was ahead of the midpoint in its guidance range of 35 to 39 million tonnes, with expectations to reach the upper end. The cash operating costs for the first half are expected to fall within the guidance range of $89 to $97 per tonne. Despite a decline in coal prices, Yancoal maintained a competitive edge by focusing on operational efficiency and minimizing costs. The quarter ended with a cash balance of $1.8 billion, post a $687 million dividend payout, and noted sales of approximately 1.4 million tonnes deferred to the third quarter due to logistic disruptions. Additionally, the total recordable injury frequency rate was at 6.32, under the industry average of 7.93. The conference highlighted a cautious outlook on coal prices due to global supply and demand dynamics, with specific attention to the impacts of weather and geopolitical factors on market conditions.

Yancoal Australia Financial Statement Overview

Summary
Yancoal Australia Ltd. shows strong profitability with a high gross profit margin and a solid balance sheet with low debt levels. However, declining revenues and fluctuations in cash flows present challenges.
Income Statement
75
Positive
Yancoal Australia Ltd. demonstrates strong profitability with a high gross profit margin consistently over 70% in recent years. However, there is a notable decline in total revenue from $10.657 billion in 2022 to $6.766 billion in 2024, indicating significant revenue contraction. The absence of EBIT in 2024 further impacts the profitability metrics, although EBITDA remains robust.
Balance Sheet
82
Very Positive
The company maintains a solid financial position with a low debt-to-equity ratio, decreasing from 0.08 in 2023 to 0.01 in 2024, indicating minimal leverage. The equity ratio remains strong, showing stability in asset financing primarily through equity. However, the drop in total assets from 2022 may signal underlying asset management challenges.
Cash Flow
70
Positive
Yancoal's free cash flow grew significantly from 2023 to 2024, demonstrating effective cash management and capital allocation. Although operating cash flow data for 2024 is unavailable, historical trends suggest strong cash generation capabilities. The company faces potential risks with fluctuating capital expenditures and financing cash flows.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.26B6.77B7.80B10.66B5.52B3.55B
Gross Profit2.83B5.37B4.55B7.51B2.70B855.00M
EBITDA2.15B2.47B3.51B6.34B2.18B-44.00M
Net Income959.00M1.22B1.82B3.59B791.00M-1.04B
Balance Sheet
Total Assets11.78B12.36B11.81B13.37B12.34B11.05B
Cash, Cash Equivalents and Short-Term Investments1.79B2.46B1.40B2.70B1.50B637.00M
Total Debt128.00M112.00M146.00M673.00M3.44B4.21B
Total Liabilities2.98B3.04B3.37B5.34B6.19B5.86B
Stockholders Equity8.80B9.31B8.44B8.03B6.14B5.19B
Cash Flow
Free Cash Flow947.00M1.43B639.00M6.01B1.64B337.00M
Operating Cash Flow1.77B2.13B1.26B6.56B1.91B616.00M
Investing Cash Flow-823.00M-687.00M-596.00M-334.00M-317.00M-602.00M
Financing Cash Flow-754.00M-498.00M-1.98B-5.13B-761.00M-314.00M

Yancoal Australia Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.59
Price Trends
50DMA
5.39
Positive
100DMA
5.72
Negative
200DMA
5.47
Positive
Market Momentum
MACD
0.05
Negative
RSI
56.12
Neutral
STOCH
80.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:YAL, the sentiment is Positive. The current price of 5.59 is above the 20-day moving average (MA) of 5.46, above the 50-day MA of 5.39, and above the 200-day MA of 5.47, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 80.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:YAL.

Yancoal Australia Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$5.93B8.8811.40%2.08%52.51%82.60%
73
Outperform
$7.43B7.7511.04%10.41%-8.45%-24.30%
71
Outperform
AU$3.54B8.0717.04%8.13%-1.53%-7.57%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
61
Neutral
AU$1.99B513.950.15%7.85%-18.98%-99.05%
52
Neutral
AU$569.99M-1.20-28.58%4.50%-23.26%-1008.87%
45
Neutral
AU$149.98M25.721.34%-5.47%-86.96%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:YAL
Yancoal Australia
5.59
-0.42
-6.97%
AU:BRL
Bathurst Resources Ltd
0.64
-0.09
-12.33%
AU:NHC
New Hope Corporation Limited
4.18
-0.23
-5.11%
AU:WHC
Whitehaven Coal Limited
7.15
0.39
5.78%
AU:SMR
Stanmore Resources Ltd
2.16
-0.93
-30.10%
AU:CRN
Coronado Global Resources Inc. Shs Chess Depository Interests Repr 10 Sh
0.33
-0.68
-67.33%

Yancoal Australia Corporate Events

Yancoal Australia Reports Steady Q3 2025 Performance Amid Market Challenges
Oct 20, 2025

Yancoal Australia reported a steady performance for the third quarter of 2025, with ROM coal production reaching 15.8 Mt and saleable coal production at 12.3 Mt. Despite weather-related delays, the company managed to recover sales deficits from the previous quarter, achieving an average realized coal price of A$140 per tonne. The company’s cash balance stood at $1.8 billion, positioning it well to explore opportunities amid current market conditions. Yancoal remains on track to meet its operational guidance for 2025, with production and cost metrics aligning with expectations. The company noted that international coal indices faced strong supply and subdued demand, yet average prices improved marginally from the previous quarter.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$6.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Australia to Release 3Q 2025 Report and Host Webcast
Oct 14, 2025

Yancoal Australia Ltd has announced that it will release its third-quarter 2025 Quarterly Report on October 20, 2025, after 7:30 pm ADST. The company will also host a webcast for investors and analysts on October 21, 2025, to discuss the report’s details. This announcement is part of Yancoal’s ongoing efforts to maintain transparency with its stakeholders and provide timely updates on its financial performance.

Yancoal Completes Acquisition to Boost Stake in Moolarben Joint Venture
Oct 3, 2025

Yancoal Australia Ltd has completed the acquisition of an additional 3.75% interest in the Moolarben Joint Venture, increasing its economic stake to 98.75%. The transaction, valued at A$110.5 million, will be funded through cash holdings and future operating cash flows, with payments spread over five years. This acquisition is expected to enhance Yancoal’s production and revenue, consolidating its position in the coal industry.

Yancoal Australia Submits September 2025 Monthly Return to HKEX
Oct 2, 2025

Yancoal Australia Ltd has submitted its monthly return notice for September 2025 to the Hong Kong Exchanges and Clearing Limited. This submission is part of the company’s compliance with the HKEX’s listing rules, specifically concerning the movements in securities for equity issuers and Hong Kong Depositary Receipts. The announcement does not indicate any changes in the company’s authorized or registered share capital, suggesting stability in its financial structure.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$6.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Australia Adjusts Equity Incentive Plan Amid Employee Changes
Sep 8, 2025

Yancoal Australia Ltd announced the cancellation of certain performance share rights under its Equity Incentive Plan due to employee resignations. This move reflects adjustments in the company’s incentive structures, potentially impacting employee retention and aligning with strategic operational changes.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$6.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Australia Submits August 2025 Monthly Return Notice
Sep 1, 2025

Yancoal Australia Ltd has submitted its monthly return notice for August 2025 to the Hong Kong Exchanges and Clearing Limited. This submission, which is a new entry, pertains to the movements in securities, specifically under Chapter 19B of the Exchange Listing Rules, and reflects the company’s ongoing compliance with regulatory requirements.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$6.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Earnings Call: Strong Performance Amid Challenges
Sep 1, 2025

Yancoal Australia Ltd. recently held its earnings call, revealing a strong operational performance and a robust financial position. However, the company faces challenges from decreasing coal prices and weather-related disruptions that have affected sales volumes. Despite these hurdles, Yancoal remains optimistic about navigating the current cyclical low in coal prices.

Yancoal Australia Appoints New CEO to Drive Growth
Aug 26, 2025

Yancoal Australia Ltd has announced the appointment of Mr. Sharif Burra as the new Chief Executive Officer, effective September 8, 2025. Mr. Burra, with 28 years of experience in mining and a strong background within Yancoal, is expected to continue the company’s strategic priorities and enhance shareholder value. The decision to appoint internally highlights the strength of Yancoal’s management team, and the company is poised for further growth and long-term value return for shareholders.

Yancoal Australia Reports Decline in Half-Year Profits
Aug 20, 2025

Yancoal Australia Ltd is a leading coal producer in the global seaborne market, operating a diversified portfolio of open-cut and underground mines across Australia. In its latest half-year financial report for 2025, Yancoal reported a 15% decline in revenue and a 61% drop in net profit after tax compared to the same period in 2024. The company attributed these declines to lower global coal prices and reduced demand, particularly from the Chinese property sector. Despite these challenges, Yancoal increased its saleable coal production by 15% and maintained a strong operational performance, with a significant increase in production from its tier-one assets. Looking ahead, Yancoal remains focused on optimizing its product quality and expanding its customer base to navigate the anticipated short-term volatility in coal prices.

Yancoal Australia Announces Cash Dividend
Aug 19, 2025

Yancoal Australia Ltd has announced a cash dividend, reflecting its continued commitment to providing shareholder returns. This announcement may have implications for the company’s financial strategy and could influence its market positioning by demonstrating financial stability and shareholder value.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Australia Declares Dividend for H1 2025
Aug 19, 2025

Yancoal Australia Limited has announced a dividend distribution of AUD 0.062 per share for the period ending June 30, 2025. The ex-dividend date is set for September 4, 2025, with a record date of September 5, 2025, and payment scheduled for September 19, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial performance and investor relations.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Australia Reports Stable 1H 2025 Financial Results
Aug 19, 2025

Yancoal Australia has released its financial results for the first half of 2025, indicating a stable performance amidst challenging market conditions. The announcement provides insights into the company’s operational efficiency and strategic positioning, which could have implications for its stakeholders, including investors and industry partners.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Australia Achieves Record Production Amidst Challenging Market Conditions
Aug 19, 2025

Yancoal Australia reported a strong production performance for the first half of 2025, with a 16% increase in ROM coal production and a 15% rise in saleable production compared to the previous year. Despite a 15% decrease in revenue due to lower realized coal prices and temporary logistical disruptions, the company managed to reduce its operating cash costs by 8% through productivity improvements. Yancoal’s financial resilience is highlighted by a cash balance of $1.8 billion and a declared interim dividend, reflecting its capacity to pursue growth initiatives. The company anticipates a potential recovery in coal prices, which could enhance its financial performance in the coming months.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Reports Decline in Half-Year Profits but Maintains Dividend Payout
Aug 19, 2025

Yancoal Australia Ltd reported a significant decline in its financial performance for the half-year ended 30 June 2025, with revenue dropping by 15% and net profit after tax falling by 61% compared to the same period in 2024. Despite the downturn, the company declared a 2025 interim dividend of $82 million, indicating a commitment to returning value to shareholders amidst challenging market conditions.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Yancoal Australia to Announce 1H 2025 Financial Results
Aug 13, 2025

Yancoal Australia Ltd announced it will release its financial results for the first half of 2025 on August 19, 2025, followed by a webcast for investors and analysts on August 20, 2025. This announcement is part of the company’s ongoing efforts to maintain transparency with stakeholders and provide insights into its financial performance, which could influence investor decisions and market perceptions.

Yancoal Australia Schedules Board Meeting for Half-Yearly Results
Aug 6, 2025

Yancoal Australia Ltd has announced a board meeting scheduled for August 19, 2025, to approve its half-yearly results for the period ending June 30, 2025. The meeting will also consider the payment of an interim dividend and other business matters, reflecting the company’s ongoing financial and operational strategies.

Yancoal Australia Submits July 2025 Monthly Return Notice
Aug 4, 2025

Yancoal Australia Ltd has submitted its monthly return notice for July 2025 to the Hong Kong Exchanges and Clearing Limited, detailing movements in securities as part of its compliance with Chapter 19B of the Exchange Listing Rules. This submission is part of Yancoal’s ongoing regulatory obligations and reflects its commitment to transparency and adherence to international market standards, potentially impacting its operational credibility and investor confidence.

The most recent analyst rating on (AU:YAL) stock is a Buy with a A$42.00 price target. To see the full list of analyst forecasts on Yancoal Australia stock, see the AU:YAL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 30, 2025