15 Aug 2018investor presentation● Neutral
August half-year results presentation, apparently prepared for the Hong Kong listing process (sponsors named in the disclaimer). Text provided is only the disclaimer, so no new figures can be drawn.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 Aug 2018half year report▲ GoodMajor
Half-year profit after tax was $361m (profit before tax $539m) on revenue of $2,347m, versus a $14m loss a year earlier. A maiden $130m unfranked dividend was declared, payable 21 September. US$650m of debt has now been prepaid since Coal & Allied.
7 Aug 2018regulatory community update▲ Good
Austar will restart production after all Regulator prohibition notices were cancelled on 3 August. Redeployed staff are being recalled. This resolves the July stand-down.
20 July 2018quarterly activities report▲ Good
June quarter equity saleable production was 9.16Mt (up 102%) and sales 9.92Mt (up 96%). Moolarben first longwall move is still due in the second half; Austar output fell 94% on regulatory action. HVO joint venture now operating.
9 July 2018regulatory community update▼ Bad
Austar, managed for Watagan, began standing down staff, redeploying most to Ashton, Abel and Moolarben, while Yancoal challenges two Regulator prohibition notices in the Industrial Relations Commission. No return-to-production date is available. Austar employs 205 people.
2 July 2018capital raising announcement● NeutralMajor
Yancoal lodged a confidential application for a primary Hong Kong listing, keeping its ASX listing, alongside a capital raising whose details are not finalised. A 35-for-1 share consolidation goes to a September vote; Yanzhou will dilute but stay the parent. Follows June's press reports.
15 June 2018price query● Neutral
Responding to press reports of a Hong Kong dual primary listing that could raise US$600-800m, Yancoal says the board has made no decision and there is no certainty it will proceed. It is considering options to improve share liquidity.
8 June 2018director officer appointment● NeutralMajor
Baocai Zhang became Chairman, replacing Xiyong Li who resigned from the board. Fucun Wang (Yankuang Group) joined as director, Vice Chair and Chair of the Executive Committee. Cunliang Lai stepped down as Vice Chair but stays a director.
30 May 2018debt financing▲ GoodMajor
Yancoal prepaid US$450m of Bank of China and China Construction Bank loans, bringing prepayments since the Coal & Allied completion to US$600m including US$150m in December 2017. Follows the stated debt-repayment intent.
30 May 2018investor presentation● Neutral
CEO AGM slides recap 2017: Coal & Allied acquisition, 23.44Mt equity saleable coal, 28.54Mt sales. Largely repeats previously released facts.
30 May 2018investor presentation▲ Good
Chairman's AGM speech: 2018 guidance lifted to 35-37Mt equity saleable production, capex about $247m. Says the company is considering options to improve share liquidity. Otherwise repeats known 2017 results.
4 May 2018farm in farm out completion▲ GoodMajor
The 51:49 Hunter Valley Operations joint venture with Glencore completed. Glencore bought a 16.6% interest from Yancoal for about US$429m (subject to adjustments) and 32.4% from Mitsubishi, leaving Yancoal with 51%. Resolves a thread open since July 2017.
30 Apr 2018other● Neutral
Corporate governance statement checklist lodged with the annual report, pointing to pages 65-81. Administrative, no new information.
30 Apr 2018other● Neutral
Shareholder register at 31 March 2018: Yanzhou holds 65.45%, J P Morgan Nominees 16.71%, and Glencore Coal 6.82% (3.0bn shares). Total 43.96bn shares. Glencore's holding is new in the context.
30 Apr 2018annual report● Neutral
2017 annual report restates known results: 23.44Mt equity saleable coal, $229m profit after tax, $2.6bn revenue. At 31 December 2017 Yanzhou held 65.5% and Cinda International 16.7% of 43.96bn shares.
20 Apr 2018quarterly activities report▲ Good
March quarter equity saleable production was 8.98Mt (up 115%) and sales 9.22Mt (up 84%), with Moolarben up 53% on a full quarter of longwall. Warkworth purchase completed; Glencore HVO joint venture now expected in the first half.
29 Mar 2018agm notice● Neutral
Annual General Meeting set for 30 May 2018; notice of meeting to follow.
7 Mar 2018asset acquisition disposition▲ GoodMajor
Yancoal completed buying Mitsubishi's 28.898% Warkworth interest for US$230m, lifting its Warkworth stake to about 84.5% and its share of Mount Thorley Warkworth output from 64.1% to 82.9%. This completes the option exercised in September 2017.
1 Mar 2018annual report▲ Good
Media release on 2017 results: profit before tax $311m, operating EBITDA $988m including a four-month Coal & Allied contribution, and gearing cut to 47.3% from 77.9%. The first profit after years of losses, driven by the Coal & Allied acquisition.
1 Mar 2018annual report▲ GoodMajor
Full-year 2017 statutory accounts show a profit before tax of $311m and after-tax profit of $229m on revenue of $2,601m, against a $227m loss in 2016. No dividend is recommended. Coal & Allied was consolidated from 1 September 2017.
1 Mar 2018admin correction● Neutral
Corrects the results release: after-tax profit table figures changed slightly (2017 revenue shown as $2,509m rather than $2,601m), Coal & Allied four-month EBITDA now $290m (was $286m) and HVO $143m (was $146m). Headline $311m pre-tax profit unchanged.
1 Mar 2018director officer appointment● Neutral
Director Gregory Fletcher, on the board since the 2012 Gloucester merger and chair of the audit and independent board committees, became a Co-Vice Chair from 1 March 2018, joining Baocai Zhang and Cunliang Lai.
28 Feb 2018resource reserve update▲ GoodMajor
End-2017 attributable coal resources are 6,396Mt, recoverable reserves 1,304Mt and marketable reserves 923Mt, up from 2,879Mt, 555Mt and 402Mt a year earlier. The rise follows the Coal & Allied acquisition (its resources are as at end-2016).
31 Jan 2018security holder rights change● Neutral
1,606 remaining subordinated notes converted into Yancoal shares and the rest were redeemed at US$100 face value plus a US$3.50 final distribution. The notes issuer will then leave the ASX, closing out the notes begun in 2014.
30 Jan 2018director officer appointment● Neutral
Helen Gillies and David Moult, a former Centennial Coal chief executive, joined as independent directors, replacing Vincent O'Rourke and Huaqiao Zhang who resigned effective 30 January 2018. O'Rourke was on the Independent Board Committee.
19 Jan 2018quarterly activities report▲ Good
December quarter equity saleable production was 8.65Mt (up 92%) and sales 11.31Mt (up 83%), with the first full quarter of HVO and Mount Thorley Warkworth. Full-year 2017 production was 23.44Mt, up 47%; Moolarben longwall began in October.
18 Dec 2017director officer appointment● Neutral
Xing Feng was appointed an independent non-executive director after election at the 15 December general meeting. He has worked at China Cinda Asset Management since 1999, an underwriter of the raising and a substantial holder.
15 Dec 2017investor presentation▲ Good
CEO presentation to the general meeting: Yancoal now operates six sites. Targets 20-23Mt equity production for the year ahead and expects the Glencore HVO joint venture and Warkworth purchase to complete in the first quarter. Mentions considering debt repayment and potential dividends.
7 Dec 2017security holder rights change● Neutral
Yancoal SCN will redeem all 4,900 remaining subordinated notes on 31 January 2018 at US$100 face value plus accrued distribution, unless holders convert to shares at US$0.053 by 15 January. The notes issuer plans to seek delisting afterwards.
10 Nov 2017director officer appointment● Neutral
Non-executive director William Randall resigned effective 9 November 2017. He had been on the board since the June 2012 Gloucester Coal merger.