4 Aug 2017other● Neutral
ASX notice on trading of the entitlements (code YALRA) from 4 August. Only eligible persons can exercise them; excluded investors' entitlements go to a shortfall bookbuild. Administrative market notice.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
3 Aug 2017capital raising announcement● Neutral
Letter to shareholders on the entitlement offer: about 23.46bn new shares at US$0.10, a 67.9% discount to the 31 July close. Record date 7 August. Underwriters are Shandong Lucion, Glencore and Cinda's fund; Yanzhou takes about US$1bn. Repeats known terms.
What it means for a shareholder
23.46bn new shares at US$0.100 to raise about US$2.35bn. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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2 Aug 2017security holder rights change● Neutral
Terms of the Subordinated Capital Notes were amended so holders can elect a higher conversion price. This lets Yanzhou convert its notes at US$0.10, the raising price, at the same time as the share issue. Facilitates the equity raising.
2 Aug 2017investor presentation● Neutral
Investor presentation supporting the US$2.5bn raising and Coal & Allied acquisition, positioning Yancoal as a pure-play Australian coal producer. Repeats the raising terms already announced; the disclaimer text provided contains no new facts.
2 Aug 2017capital raising announcement● NeutralMajor
Yancoal announced a US$2.5bn equity raising for Coal & Allied: a 23.6-for-1 entitlement offer at US$0.10 a share (about US$2.35bn) plus a US$150m placement. Yanzhou commits US$1.0bn and will convert its notes. Heavily dilutive for those not taking up.
2 Aug 2017other● Neutral
Trading in Yancoal shares resumed after the funding announcement. Administrative notice ending the suspension of 31 July.
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.
20 July 2017quarterly activities report▲ Good
June 2017 quarter saleable coal was 4.35Mt equity share (+12% on the year) and sales 4.92Mt (+4%). Moolarben and Duralie ran well, and the Moolarben Stage Two longwall is due to start full production in October.
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.
19 May 2017agm notice● Neutral
Replacement proxy form issued for the 26 May AGM to add elections of new directors Wu and Zhao and drop the re-election of Boyun Xu, who has resigned. Late notice acknowledged.
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%.
21 Apr 2017quarterly activities report▲ Good
March quarter saleable output was 4.18Mt (equity share), up 32%, with sales of 5.01Mt, up 55%. Moolarben rose 65%; Ashton fell 40%. Moolarben Stage Two longwall installation is scheduled for October. Coal prices eased from the prior quarter's highs.
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.