12 Dec 2013other● Neutral
Re-release of Yanzhou's Hong Kong announcement welcoming the Treasurer's removal of the foreign investment selldown conditions. It repeats the content of the 11 December announcement; no new information.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
11 Dec 2013regulatory community update● NeutralMajor
The Treasurer removed the foreign investment conditions that required Yanzhou to cut its roughly 78% stake in Yancoal below 70% by 31 December 2013. Yanzhou pledged to keep Yancoal solvent while it holds at least 51%. The board is assessing the effect on the privatisation proposal.
22 Nov 2013security holder rights change▲ GoodMajor
Yanzhou has directed Yancoal not to issue a lapse notice on its 87,645,184 CVR shares, so Yanzhou will buy them in cash. The repurchase price is likely A$3.00 per CVR, settling by 4 March 2014 at the latest. This resolves the CVR thread.
19 Nov 2013other● Neutral
Yancoal responds to a press report that FIRB rejected Yanzhou's request to waive the condition to sell down to 30% public ownership by year end. The independent board committee says it is unaware of any such decision.
28 Oct 2013other● Neutral
Yancoal responds to press speculation about talks between Yanzhou and Noble, its second-largest shareholder. The independent board committee says it is unaware of any outcome and was not party to any discussions.
12 Sept 2013director officer appointment● NeutralMajor
Li Xiyong, 49, is appointed director and Chairman, replacing Weimin Li, who resigned in July. He has also been appointed Chairman of majority shareholder Yanzhou, so both companies share the same chair.
19 Aug 2013half year report▼ BadMajor
First-half 2013 loss after tax was $749.4m, driven by a $492.7m unrealised foreign exchange loss on US dollar debt and a $343.0m mining tenement impairment. Operating EBIT was a $109.3m loss, while on-site unit cash costs were falling.
19 Aug 2013half year report▼ Bad
Full half-year accounts back the headline: revenue $718.4m, net loss $749.4m, no dividend. Impairments were $258m at Moolarben and $85m at Stratford & Duralie. Net tangible assets per share fell to $0.88 from $1.68 at December 2012.
19 Aug 2013director officer appointment▲ GoodMajor
Reinhold Schmidt, formerly COO of Xstrata Coal Queensland, is appointed permanent CEO from 26 August 2013 after a global search. This resolves the CEO search open since Murray Bailey stood down in March; Peter Barton had been acting CEO.
19 Aug 2013investor presentation● Neutral
Half-year results presentation repeating the announced figures: operating EBIT loss of $109.3m and NPAT loss of $749.4m. It highlights record quarterly production at Moolarben, Yarrabee and Abel and a target 15% cut in cash costs. No new information evident.
30 July 2013other▼ Bad
Yancoal notes Yanzhou's downgraded half-year forecast, which cited exchange rates. Yancoal says a weaker Australian dollar helps coal sales revenue but causes unrealised non-cash losses on its US dollar debt. Half-year results are due around 16 August.
23 July 2013director officer appointment● NeutralMajor
Chairman Weimin Li resigned as chairman and director effective 22 July 2013, following his resignation as chairman of controlling shareholder Yanzhou. A new Chairman will be announced in due course.
9 July 2013business combination● NeutralMajor
Majority owner Yanzhou (78%) made a non-binding proposal to buy the other 22% by scheme of arrangement, offering 0.91 Yanzhou CDIs per Yancoal share, followed by delisting from ASX. Independent board committee will do due diligence; no assurance of a deal. CVRs not included.
27 June 2013debt financing● NeutralMajor
Yancoal arranged a US$250m three-year unsecured, covenant-free loan from Yancoal International (Holding), a subsidiary of majority shareholder Yanzhou. Principal is repayable at maturity. It funds working capital and capital expenditure, adding to the earlier US$596m Yanzhou loan.
31 May 2013other● Neutral
AGM speeches from the Chairman and acting CEO Peter Barton repeat the 2012 profit of $404.6m, continued cost cutting with the LEAN programme, and the plan to lift production from 14Mt to about 24Mt by 2017. No new information evident.
27 Mar 2013annual report● NeutralMajor
2012 annual report restates a board-approved five-year plan to lift equity saleable production to around 24Mtpa by 2017. Resources are 3,824Mt and reserves about 800Mt. Yanzhou holds 78.0% and Noble Group 13.2%. Take-or-pay costs are expected to persist into 2013.
25 Mar 2013investor presentation● Neutral
Roadshow presentation for Asian and Australian investors in the week of 25 March, covering the 2012 full-year results. Visible text is a cover note and disclaimer; no new information is evident in the portion provided.
11 Mar 2013director officer appointment● NeutralMajor
Murray Bailey stands down as CEO from 12 March 2013, earlier than the 6 July term end announced in February. COO Peter Barton becomes acting CEO while the search for a permanent replacement continues. Bailey stays available to assist until July.
1 Mar 2013other● Neutral
S&P Dow Jones index announcement adds Yancoal (YAL) to the All Ordinaries index effective after close on 15 March 2013. Routine index change with no company operational news.
28 Feb 2013annual report● NeutralMajor
Statutory 2012 accounts: net profit $404.6m on revenue $1,412.3m, but before non-recurring items there was a pre-tax loss of $9.7m and profit after tax of $69.0m. No dividend. Net tangible assets per share fell to $1.73 from $21.18. Gloucester contributed a $32.7m loss after tax.
28 Feb 2013annual report▼ BadMajor
Full-year NPAT $404.6m on revenue $1,412.3m, boosted by a $200m merger acquisition gain. Operating EBITDA fell to $197.9m from $621.1m, with an EBIT loss of $5.2m, blamed on lower coal prices, strong Australian dollar, higher costs and unused port and rail take-or-pay. Record 14.7Mt produced.
21 Feb 2013material agreement▲ Good
Middlemount (about 50% Yancoal, with Peabody) will move its mining contract with NRW to a dry hire arrangement, with Middlemount Coal becoming operator. Transition runs from 23 February to mid-2013. Expected benefits are higher production and lower operating costs. Follows the January flood.
20 Feb 2013resource reserve update● NeutralMajor
Revised JORC resources total 3,824Mt and reserves 799.7Mt, down 1.7% from 813.9Mt in the scheme booklet. Changes are described as minor. Moolarben resources rose 38Mt to 1,222Mt; Donaldson fell 58Mt to 827Mt.
11 Feb 2013director officer appointment● NeutralMajor
CEO Murray Bailey, who joined in 2010, will not have his contract extended beyond 6 July 2013. The company says the Brisbane-to-Sydney commute is the reason, and it has begun searching for a replacement.
1 Feb 2013production update▼ BadMajor
Yancoal declared force majeure on several Yarrabee coal sales contracts because cyclone Oswald damaged the Blackwater rail line to Gladstone. Yarrabee cannot rail coal to port, and ponded water may affect mining for several more weeks.
29 Jan 2013production update▼ Bad
Ex-cyclone Oswald rain flooded central Queensland mines. A levee at Middlemount (Peabody joint owner) was breached, and production is likely hit for at least three weeks. Yarrabee paused briefly but no impact to its quarterly production is expected.
8 Jan 2013regulatory community update● Neutral
The ATO published a class ruling on the CVR shares issued to former Gloucester holders, consistent with the tax outcomes in the scheme booklet. Tax guidance only, with no change to company operations.
8 Jan 2013debt financing▲ GoodMajor
Yancoal arranged a US$596m unsecured, covenant-free five-year loan from majority shareholder Yanzhou, with principal repayable from June 2015. It funds the Promissory Notes for the capital return to former Gloucester shareholders.
16 Nov 2012regulatory community update▼ Bad
An application has been lodged in the NSW Land and Environment Court challenging the October approval of the Ashton South East Open Cut. Yancoal will defend the appeal, so the approval is again in question.
30 Oct 2012other▼ BadMajor
Yancoal expects a third-quarter loss after tax of $7.4m, or $53.1m excluding foreign exchange gains on the acquisition loans (unaudited). A five-year strategic plan goes to the board in November; full-year results are due by end of February 2013.