Yancoal shares surge on annual production, sales gains
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The news: Yancoal shares advanced on the ASX after the coal miner met its 2024 production guidance.
The numbers: Yancoal shares were up 5.7% to $6.29 by 3pm AEDT, extending gains of around 15% since the start of January.
The miner reported a 10% rise in production and 14% increase in sales year on year.
Yancoal reported 36.9 million tonnes of attributable saleable production, within guidance of 35 million and 39 million tonnes.
Cash operating costs are expected to fall within the middle of the guided range of $89 to $97 per tonne. Capital expenditure is expected to be in the lower half of the guided range of $650 million to $800 million.
However, the miner's average realised coal price lowered 24% to $176 per tonne in 2024 compared to 2023.
The context: Yancoal noted that short-term influences continued to affect indices and market sentiment in thermal coal markets.
The company said that good export coal supply in recent times has met weak regional demand. However, the weakening Australian dollar has provided some offset.
The source: ASX announcement
