- Yancoal’s Q3 ROM output dropped 7% q-o-q; sales volume surged 31% q-o-q
- Saleable production likely to be in upper half of 35-39 mnt guidance
Yancoal Australia reported a decline in operational performance in Q3 CY2025, with run-of-mine (ROM) production falling 7% quarter-on-quarter (q-o-q) to 15.8 million tonnes (mnt), and saleable coal output down to 12.3 mnt on a 100% basis.
Attributable saleable coal production stood at 9.3 mnt, marking a 2% q-o-q decrease, primarily due to lower production rates at certain mines. However, attributable coal sales rose sharply by 31% q-o-q to 10.7 mnt, supported by the clearance of shipments delayed in Q2 amid earlier port disruptions.
Operational agility across mine sites
The company experienced a good start to the quarter, but mid-quarter, wet weather impacted operations. However, Yancoal was able to effectively manage logistics to prevent stockpile constraints. Saleable output is now expected in the upper half of its guidance.
- Hunter Valley Operations (HVO): HVO began the quarter with overburden and ROM coal volumes ahead of plan, aided by improved truck productivity and a redesigned ramp system. Despite August rains and lower-yield coal in September, attributable saleable coal rose 14% q-o-q.
- Middlemount: The mine plan was adjusted early to mitigate rainfall impacts, prioritising ROM coal. ROM volumes rose 11% q-o-q, while saleable coal fell 8% as expected. Yield reconciliation in the recovery plan has recently boosted mining volumes.
- Moolarben: The longwall ran as planned after early resumption, though wet weather slowed open-cut mining. ROM coal output remained above expectations until September, and August saw a record monthly saleable coal, keeping quarterly output near plan.
- Mount Thorley Warkworth (MTW): The site began the quarter with overburden and ROM coal ahead of plan from strong blasting. Wet weather and equipment issues later impacted volumes, but favourable wash plant yields kept saleable coal production in line with Q2.
- Yarrabee: Consistent performance was seen throughout, as the site focused on improving fleet productivity and operating hours. There were minor yield fluctuations, but overall mining and wash plant operations were steady.
- Ashton: Production was limited to development coal during longwall relocation, which is now complete and ready to mine once dewatering finishes.
Development and exploration activities
- MTW underground mine: A feasibility study has been scheduled for 1QFY’26, with potential to extend the mine’s production life without altering annual limits.
- HVO mine: Efforts are underway to secure approval to extend the life of HVO North beyond the current extraction limit.
- Moolarben OC3 extension: The project is under assessment by NSW planning authorities; approval could add 30 mnt to total ROM production without impacting annual limits.
- Stratford renewable energy project: Commercial viability and approval processes are ongoing.
- Exploration: The company has invested $0.51 million at HVO and Moolarben, drilling four core and non-core boreholes (480 m) focused on coal structure and quality.
Corporate developments
The quarter saw significant leadership changes, with Sharif Burra appointed as CEO, effective 8 September 2025. Additionally, Yancoal acquired a further 3.75% stake in the Moolarben Joint Venture, increasing its economic interest to 98.75%.
Improved safety reflects operational discipline
Yancoal’s Total Recordable Injury Frequency Rate improved to 5.71 during the quarter, remaining below the industry weighted average of 7.96. This improvement demonstrates the company’s continued commitment to safety through targeted intervention activities.
Outlook
Yancoal reaffirmed its 2025 guidance, with attributable saleable production tracking above the mid-point of the 35-39 mnt range. The company remains on track to meet its cash operating costs and capital expenditure targets for the full year.
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