2 Aug 2017other● Neutral
Trading in Yancoal shares resumed after the funding announcement. Administrative notice ending the suspension of 31 July.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
2 Aug 2017capital raising announcement● Neutral
Entitlement offer booklet for the 23.6-for-1 offer at US$0.10 per share, raising up to about US$2.35bn, underwritten or committed to about US$2.3bn. Offer closes 25 August 2017. Formal document for terms already announced.
31 July 2017other● Neutral
Yancoal shares were suspended at the company's request pending an announcement on funding for the Coal & Allied acquisition. Short-term trading halt ahead of the capital raising.
28 July 2017farm in farm out agreement▲ GoodMajor
Yancoal agreed a 51:49 Hunter Valley Operations joint venture with Glencore, which pays US$1,139m for 49%: US$710m to Mitsubishi and US$429m to Yancoal. Glencore replaces Yancoal's Mitsubishi tag-along and will take up to US$300m of any entitlement offer shortfall. Conditional on Coal & Allied completing.
29 June 2017asset acquisition disposition▲ GoodMajor
Rio Tinto shareholders approved the Coal & Allied sale to Yancoal, satisfying a key condition and ending Rio's ability to consider rival bids such as Glencore's. Yancoal aims to complete within Q3 2017. Resolves the contest.
26 June 2017other▼ Bad
Rio Tinto received a revised Glencore proposal for Coal & Allied and will consider it before the 27 June meeting. If deemed superior, the meeting may be adjourned and Yancoal gets two business days to counter. Reopens the contest.
26 June 2017material agreement▲ GoodMajor
Yancoal further amended the Coal & Allied agreement: price stays US$2.45bn at completion, plus US$240m of non-contingent royalties over five years. Yankuang adds a US$125m bank guarantee to its US$100m deposit. NSW Government approvals now received, answering an open condition.
26 June 2017asset acquisition disposition▲ GoodMajor
Rio Tinto confirmed Yancoal as preferred buyer of Coal & Allied over Glencore's revised offer. Yancoal's improved terms total US$2.69bn: US$2.45bn cash at completion plus US$240m guaranteed royalties, with Yankuang's break fee raised to US$225m. Completion expected Q3 2017.
20 June 2017material agreement● NeutralMajor
Yancoal amended the Coal & Allied agreement: the US$500m deferred payments are now due at completion, total US$2.45bn. It waives MAC rights. Yankuang undertakes funding up to US$2.1bn if the raising falls short, plus a US$100m deposit; terms under independent director review.
20 June 2017asset acquisition disposition▲ GoodMajor
Rio Tinto reconfirmed Yancoal as preferred buyer over Glencore's US$2.55bn proposal, after Yancoal agreed to pay the full US$2.45bn at completion. Rio cited funding and regulatory certainty. Shareholder meetings still go ahead; completion expected Q3 2017.
13 June 2017farm in farm out agreement▲ GoodMajor
Mitsubishi accepted the US$710m offer for its 32.4% of HVO JV. It also granted Yancoal a call option over its 28.9% of Warkworth for US$230m and exclusive agency for thermal sales to Japanese utilities. Conditional on Coal & Allied completing.
13 June 2017regulatory community update● NeutralMajor
China's NDRC approved the Coal & Allied acquisition, completing key Chinese and Korean approvals alongside FIRB. Also notes a rival Glencore proposal to Rio; if Rio deems it superior, Yancoal has a right to match. Introduces a competing bidder.
26 May 2017other● Neutral
Chairman's AGM speech repeats the 2016 loss of $227.1m and the Moolarben progress. Says the business is not yet back to profit and calls the Coal & Allied deal transformative, with completion of financing expected Q3 2017. No new facts.
25 May 2017asset acquisition disposition● NeutralMajor
Yancoal made a binding tag-along offer of US$710m for Mitsubishi's 32.4% of the Hunter Valley Operations JV, open until 23 June. It is required under the Coal & Allied deal, conditional on that completing, and would add to HVO exposure.
22 May 2017other● Neutral
Rio Tinto announced its shareholder meetings on the Coal & Allied sale to Yancoal: London on 27 June and Sydney on 29 June 2017. An ordinary resolution is needed, so this is the next step in the deal.
1 May 2017director officer appointment● Neutral
Yanzhou's general manager Xiangqian Wu and its CFO Qingchun Zhao join the board as non-executive directors, replacing resigned Boyun Xu and Yuxiang Wu, effective 28 April 2017. Tightens Yanzhou's executive presence on the board.
26 Apr 2017other● Neutral
Appendix 4G corporate governance checklist lodged with the annual report, pointing to the governance statement on pages 70-89. Administrative filing with no new substance.
26 Apr 2017annual report● Neutral
Publication of the 2016 annual report, repeating the $227.1m loss, $1.24bn revenue and 16.0Mt saleable coal already announced on 28 February. Yanzhou holds 78.0%.
13 Apr 2017regulatory community update▲ GoodMajor
FIRB has no objection to Yancoal buying 100% of Coal & Allied (US$2.45bn), subject to existing governance and standard tax conditions. Called a critical milestone. Rio and Yanzhou shareholder approvals still needed; completion still expected Q3 2017.
31 Mar 2017debt financing● Neutral
BOCI's remaining US$175m bond subscription is extended another six months to 30 September 2017, still subject to BOCI credit approval. If not approved, it is cancelled and the total stays at US$775m. Second extension of the original deadline.
1 Mar 2017admin correction● Neutral
Corrects the 28 February release: 2017 saleable guidance of 12.0-12.5Mt (equity share) excludes Middlemount and Watagan assets, not just Coal & Allied. The figure is unchanged; only what it covers is clarified.
28 Feb 2017investor presentation▲ Good
Media release repeating the 2016 loss of $227.1m. New: operating EBIT of $52.3m (up $253.1m), 16.0Mt saleable coal, 2017 guidance of 12.0-12.5Mt saleable excluding Coal & Allied, and capex of about $244m.
28 Feb 2017annual report▼ Bad
Full-year 2016 loss was $227.1m on revenue of $1.24bn, versus a $291.2m loss in 2015. No dividend. Net tangible assets per share are shown as negative $0.91. Moolarben contributed $125.3m. Austar had a small coal burst in August 2016.
24 Jan 2017asset acquisition disposition▲ GoodMajor
Yancoal agreed to buy 100% of Coal & Allied (Hunter Valley Operations, Mt Thorley Warkworth) for US$2.45bn (A$3.27bn) plus a coal-price royalty. To be funded by a pro-rata share offer; Yanzhou intends to take up about US$1bn. Completion expected third quarter 2017.
24 Jan 2017resource reserve update● NeutralMajor
Year-end 2016 attributable resources are 2,879Mt, with recoverable reserves of 555Mt and marketable reserves of 402Mt. Annual JORC statement; excludes the proposed Coal & Allied assets.
24 Jan 2017asset acquisition disposition▲ GoodMajor
Rio Tinto announced the sale of Coal & Allied to Yancoal for up to US$2.45bn: US$1.95bn at completion plus US$500m deferred over five years, plus royalties. Confirms the earlier price-query speculation. Needs Rio shareholder, Chinese and government approvals; completion expected second half 2017.
3 Jan 2017security holder rights change● Neutral
60 Subordinated Capital Notes were converted into ordinary shares at a holder's request, effective 31 December 2016. A very small conversion against 18,005,102 notes outstanding.
18 Oct 2016price query● Neutral
ASX queried a share price jump from $0.24 to $0.46. Yancoal cited media speculation about interest in Rio Tinto's Australian thermal coal assets, saying it is reviewing acquisition opportunities with no certainty, and pointed to stronger coal prices.
30 Sept 2016debt financing● Neutral
Yancoal has issued US$775m of the US$950m bonds. BOCI's remaining US$175m subscription is extended six months to 31 March 2017, subject to BOCI credit approval; if not obtained, the total stays at US$775m. Pushes back the 30 September deadline.
18 Aug 2016investor presentation● Neutral
Media release repeating the half-year loss of $180.4m and the Watagan bond deal. New figures: operating EBIT loss of $101.9m and saleable coal of 8.9Mt. Management expects thermal coal price improvements to continue.