Yancoal Australia, an overseas subsidiary of China’s state-run Yanzhou Coal Mining, reported the first annual loss in 2020 in four years, due to decline in demand and coal prices, according to its financial report released on February 26.
The company posted a loss of A$1.04 ($765 million) in 2020, tumbling 249% compared with a year earlier. It bagged total revenue of A$3.47 billion, down 22% year on year.
The miner ascribed the decline to the pandemic-weakened coal consumption and prices.
In 2020, sell prices of mine-mouth coal of the company averaged A$82/t, down 26% from A$111/t in 2019. Thermal coal prices averaged A$76/t in 2020, down 24% year on year, and metallurgical coke stood at A$124/t, sliding 26% on the year, the company said.
The company churned out 38.3 million tonnes of coal in 2020, up 8% year on year. Coal sales climbed 6% to 37.9 million tonnes.
It sold 37.4 million tonnes of coal in 2020, up 5% from 35.6 million tonnes in 2019, with about 74% sold to Asia, including Japan, Singapore, China, and S Korea.
Coal sales revenue was registered at A$3.43 billion last year, a 21% decrease from 2019.
The company expects its coal sales to increase 1.83% to 39 million tonnes in 2021. Cash costs are estimated at A$60-62/t, up 2-5% from the 2020 level. Capital expenditure is expected to be between A$360 million and A$380 million, 29-36% higher than 2020.
Yancoal Australia produces a mix of premium thermal, semi-soft coking and PCI coals for export. It owns, operates or participates in 11 coal mines across NSW, Queensland and Western Australia.
Yancoal’s New South Wales mines include Moolarben, Hunter Valley Operations, Mount Thorley Warkworth, Stratford-Duralie, Ashton, Austar and Donaldson. Queensland mines include Yarrabee and the Middlemount Joint Venture, it said on its website.
Yancoal also manages the Cameby Downs and Premier coal mines in Queensland and Western Australia respectively, on behalf of Yanzhou.
By Emma Yang & Harry Huo, sxcoal.com
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