Yancoal's cash balance soars despite lower coal prices

Yancoal Australia (HKEX: 3668) reported a strong cash position for the quarter ending March 31, 2025, increasing its cash balance to $2.6 billion. The company achieved attributable saleable coal production of 9.5Mt and attributable coal sales of 8.4Mt. The average realized coal price was A$157/t. Despite facing weak pricing due to strong supply and subdued demand, the company remains well-positioned to deliver a solid operational performance for the year. Yancoal plans to return $687 million to shareholders as a fully franked final dividend of A$0.52 per share at the end of April. The company's 2025 operational guidance remains unchanged with attributable saleable production of 35-39Mt, cash operating costs of $89-97/tonne, and capital expenditure of $750-900 million.