Yancoal’s losses widen in 1H16

Australian coal company Yancoal announced a half-year loss of AUS$180.4 million, compared to a loss of ASU$145.4 million in 1H15. The loss comes on the back of reduced production and limited price improvements across thermal and metallurgical coal markets, the company said.

The company equity share of ROM coal production fell to 9.5 million t in 1H15 with 7.1 million t of saleable coal production. The compares to 10.6 million t of ROM coal production and 7.7 million t of saleable coal in 1H15.

“Production for the half year reporting period was in accordance with expectations, following the cessation of mining at the Donaldson operations, continued challenges with the geology at the Stratford Duralie open cut and scheduled longwall moves at the Aston and Austar underground mines,” the company said in a statement.

The company has recently implemented a new debt-funding arrangement to up to US$950 million through the issuing of nine-year secured debt bonds by a newly established Yancoal subsidiary, Watagan Mining Co. Watagan includes the underground mining assets at Austra, Ashton and Donaldson.

The new debt funding and company structure will support Yancoal’s “long term strategy for continued growth and investment within the Australian resources sector,” Yancoal’s CEO Reinhold Schmidt. “With the ongoing support of our major shareholders, we continue to maintain operational flexibility and experience required to respond quickly, safely and efficiently to new market opportunities.”

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/coal/18082016/yancoals-losses-widen-in-1h16-2016/