Investment Rating - The report maintains a "Buy" rating for Yancoal Australia with a target price of 38.2 HKD [3][6]. Core Insights - The company reported a strong recovery in coal production in Q3 2024, achieving an equity coal production of 10.2 million tons, a year-on-year increase of 10% and a quarter-on-quarter increase of 24% [1]. - The average coal price realized in Q3 was 170 AUD/ton, reflecting a year-on-year decrease of 14% and a quarter-on-quarter decrease of 6% [1]. - The company expects to maintain its production guidance of 35-39 million tons for the full year [1]. - Cash operating costs remain unchanged at 89-97 AUD/ton, with a cash balance increase of 430 million AUD in Q3 [1]. - The report projects EPS for 2024 and 2025 to be 0.78 AUD and 0.98 AUD respectively, with a 2025 P/E ratio of 7.5x [1]. Summary by Sections Production and Sales - Q3 equity production was 10.2 million tons, with sales of 10.4 million tons, showing a year-on-year increase of 10% and a quarter-on-quarter increase of 24% [1]. - The company expects Q4 production to continue at Q3 levels, with total equity production for the first nine months of 2024 at 27.2 million tons, a 15% increase year-on-year [1]. Pricing - The average sales price for coal in Q3 was 170 AUD/ton, with a significant drop in prices for both thermal coal (157 AUD/ton, down 29% year-on-year) and metallurgical coal (259 AUD/ton, down 22% year-on-year) [1]. - The report anticipates stable coal prices in Q4 due to balanced supply and demand dynamics [1]. Cost and Capital Expenditure - The cash operating cost guidance remains at 89-97 AUD/ton, with expectations for unit costs to decrease as production increases [1]. - Capital expenditure guidance is set at 650-800 million AUD, likely at the lower end of the range [1]. Dividend Policy - The company maintains a dividend policy of distributing at least 50% of net profit after tax or free cash flow, excluding non-recurring items [1]. Financial Projections - Revenue projections for 2024 and 2025 are 6.588 billion AUD and 6.919 billion AUD respectively, with net profit estimates of 1.030 billion AUD and 1.297 billion AUD [2][10].

Financial Performance - For the six months ended June 30, 2024, total revenue from ordinary operations was 3,138 million AUD, a decrease of 21% compared to 3,976 million AUD for the same period in 2023[3]. - Profit before tax, excluding non-recurring items, was 571 million AUD, down 59% from 1,388 million AUD in the previous year[3]. - Net profit attributable to shareholders after tax, excluding non-recurring items, was 420 million AUD, a decrease of 57% from 973 million AUD in 2023[3]. - Basic earnings per share, excluding non-recurring items, was 31.9 AUD cents, down 57% from 73.7 AUD cents in the prior year[4]. - Operating revenue for the first half of 2024 was AUD 3,099 million, a decrease of 21% compared to AUD 3,924 million in the first half of 2023[42]. - The company's operating profit before interest, tax, depreciation, and amortization (EBITDA) was AUD 990 million, down 46% from AUD 1,821 million in the previous year[38]. - The company's net profit attributable to shareholders decreased by 57% from AUD 973 million in the first half of 2023 to AUD 420 million in the first half of 2024[40]. - The company's operating profit before tax was AUD 590 million, down 58% from AUD 1,410 million in the previous year[38]. - The company experienced a 64% increase in income tax expenses, rising from AUD 415 million in the first half of 2023 to AUD 151 million in the first half of 2024[38]. Dividends - The company declared a final dividend of 429 million AUD (32.50 AUD cents per share) for the year ended 2023, which was paid on April 30, 2024[5][6]. - The company did not propose or declare any interim dividends for the six months ended June 30, 2024[6]. - The company paid dividends totaling 429 million AUD during the period, compared to 924 million AUD in the previous half-year[78]. Production and Sales - The company expects stronger production performance in the second half of 2024, with an 18% increase in equity commodity coal production compared to the first half of 2023[11]. - The overall average selling price of self-produced coal dropped by 37% from AUD 278 per ton in the first half of 2023 to AUD 176 per ton in the first half of 2024, mainly due to a decline in global coal prices[20]. - The total sales volume of self-produced coal decreased by 26% to 2,980 million tons in the first half of 2024 from 4,003 million tons in the first half of 2023[42]. - Self-produced coal sales volume increased by 17% from 14.4 million tons in H1 2023 to 16.9 million tons in H1 2024, driven by an 18% increase in equity commodity coal production[43]. - The company's full-year attributable saleable coal production guidance is between 35.0 million tons and 39.0 million tons, with significant increases expected in H2 2024[24]. Costs and Expenses - The average cash operating cost per ton decreased from AUD 109 in the first half of 2023 to AUD 101 in the first half of 2024, primarily due to increased saleable coal production[21]. - The total production cost per ton of coal decreased from AUD 163 in H1 2023 to AUD 140 in H1 2024[49]. - Employee benefits expenses rose by 15% from AUD 348 million in the first half of 2023 to AUD 401 million in the first half of 2024, primarily due to redundancy provisions and increased pension contributions[53]. - Transportation costs increased by 3% from AUD 401 million in the first half of 2023 to AUD 412 million in the first half of 2024, while the cost per ton of coal transported decreased from AUD 25 to AUD 22[54]. - Government royalties decreased by 28% from AUD 365 million in the first half of 2023 to AUD 261 million in the first half of 2024, primarily due to a 26% drop in self-produced coal sales revenue[54]. Shareholder Information - As of June 30, 2024, the company’s directors and senior executives hold a total of 5,859,701 shares, representing approximately 0.44377% of the company[13]. - The largest shareholder, Yancoal Australia Ltd, holds 822,157,715 shares, accounting for 62.26% of the total shares[17]. - Cinda International HGB Investment (UK) Limited holds 101,601,082 shares, representing 7.69% of the total shares[17]. Environmental and Sustainability Initiatives - The company has spent AUD 35 million on purchasing Australian Carbon Credit Units (ACCUs) to meet regulatory obligations under the emissions reduction plan[29]. - Yancoal Australia is actively reviewing recommendations from the Task Force on Climate-related Financial Disclosures to incorporate into its sustainability strategy[28]. - The company is focusing on reducing Scope 1 emissions, particularly from diesel consumption and fugitive emissions, by identifying reduction opportunities at key mines[29]. - The 2023 sustainability report is available on the company's website, detailing progress on environmental, social, and governance (ESG) issues[28]. - The company is committed to improving its sustainability performance through strict governance processes and risk management frameworks[32]. Risk Management and Compliance - The company confirms that all directors complied with the share trading policy during the reporting period[15]. - The audit and risk management committee reviewed the interim financial statements for the six months ending June 30, 2024, which were not audited but reviewed by the auditors[17]. - The company has implemented necessary internal controls to ensure the financial statements are free from material misstatement due to fraud or error[147]. - The auditors did not find any matters that would indicate the half-year financial statements do not comply with the Corporations Act 2001[147]. Future Outlook - The company plans to focus on operational adjustments and cost management strategies to improve financial performance in the upcoming periods[39]. - The company is exploring potential acquisitions to enhance its operational capabilities, with a budget allocation of AUD 200 million for strategic investments[154]. - The company has initiated a long-term incentive plan aimed at aligning executive performance with shareholder interests, with a target of achieving a 20% return on equity by 2026[154].

Investment Rating - The report maintains a "BUY" rating for Yancoal Australia with a target price revised down to HK$42 from HK$45, indicating a potential upside of 17% from the current price of HK$35.90 [2][11]. Core Insights - Yancoal's 1H24 net profit decreased by 57% year-over-year to A$420 million, primarily due to higher-than-expected unit costs and a significant decline in blended coal average selling price (ASP) [2][3]. - The company has a strong net cash position of A$1.42 billion as of the end of June 2024, which may facilitate potential M&A activities [2][3]. - Despite the challenges, Yancoal maintains its full-year guidance for production and operating cash costs, with expectations for a unit cash cost reduction in the second half of 2024 [2][3]. Financial Performance - Revenue for 1H24 was A$3.1 billion, down 21% year-over-year, with coal sales volume growth of 16.9 million tonnes being offset by lower prices [2][3]. - The unit cash operating cost in 1H24 was A$101 per tonne, a decrease of 7% year-over-year but an increase of 17% quarter-over-quarter [2][3]. - The report projects a full-year revenue of A$7.138 billion for FY24, reflecting an 8.2% decline compared to FY23 [14]. Production and Cost Guidance - Yancoal's full-year production guidance remains unchanged at 35-39 million tonnes, with operating cash costs expected to be between A$89-97 per tonne [2][3]. - The report anticipates a 7% year-over-year reduction in unit cash costs in the second half of 2024, despite the current higher cost assumptions [2][3]. Market Conditions - The blended coal ASP fell by 37% year-over-year to A$176 per tonne, contributing to the decline in revenue and profit [2][3]. - The report highlights the potential for Yancoal to benefit from product diversification and long-term growth strategies, particularly in light of its strong cash position [2][3]. Valuation Metrics - The report provides a valuation based on net present value (NPV) with key assumptions including long-term thermal and metallurgical coal prices starting in 2027 at A$130 and A$200 per tonne, respectively [11][12]. - The projected P/E ratio for FY24 is 6.6, indicating a relatively attractive valuation compared to historical performance [14].

Investment Rating - The report maintains an "Accumulate" rating for Yancoal Australia [3][10]. Core Views - The company's production continues to recover in H1 2024, but sales prices have decreased year-on-year, impacting profit performance. Looking ahead to H2 2024, sales volume recovery is expected to accelerate, and the impact of price year-on-year comparisons is anticipated to diminish [3]. - Total revenue for H1 2024 was AUD 3.138 billion, a decrease of 21.08% year-on-year, while net profit attributable to shareholders was AUD 420 million, down 56.83% year-on-year, which was below market expectations. Consequently, net profit forecasts for 2024-2026 have been revised down to AUD 1.285 billion, AUD 1.570 billion, and AUD 1.722 billion, reflecting changes of -5.18%, +2.41%, and +0.89% respectively [3]. - The average selling price for coal in H1 2024 was AUD 176 per ton, a year-on-year decrease of 37%. The average price in Q2 was around AUD 180, down 20% year-on-year, but this decline has narrowed compared to Q1's 48% drop. It is expected that the year-on-year price decline will continue to narrow in H2 2024 [3]. Production and Sales - The company's coal production rights in H1 2024 reached 16.9 million tons, a year-on-year increase of 17%, with thermal coal production at 14.9 million tons (up 24% year-on-year) and metallurgical coal sales at 2 million tons. Q2 production was 8.2 million tons, a 4% year-on-year decline, attributed to slight fluctuations in quarterly production scheduling [3]. - The company expects to maintain a full-year production target of 35-39 million tons, representing an increase of 6-56 million tons year-on-year (2-17% growth), with continued production recovery anticipated in H2 2024 [3]. Financial Health - As of the report date, the company reported operating cash flow of AUD 851 million, a significant increase of 856% year-on-year, primarily due to tax payments made in H1 2023. The company has maintained a net cash position since 2022, with a net asset liability ratio of zero and cash holdings of AUD 1.546 billion [3].

澳洲證券交易所、香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失 承擔任何責任。 Yancoal Australia Ltd ACN 111 859 119 兗煤澳大利亞有限公司* （於澳大利亞維多利亞州註冊成立的有限公司） （香港股份代號: 3668） （ 澳洲股份代號: YAL） 截至 2024 年 6 月 30 日止半年度 之半年業績公告 兗煤澳大利亞有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬公司截至 2024 年 6 月 30 日止半年度之半年業績。該半年業績已由本公司審計與風險管理委員會審閱，其認 為有關業績的編製符合適用會計準則及規定，並已作出充足披露。 本公告列載本公司截至 2024 年 6 月 30 日止半年度的半年財務報告全文，符合香港聯合交易所有限 公司證券上市規則（「上市規則」）中有關中期業績公告的披露要求。 本公告於香港聯合交易所有限公司的網站（「披露易網站」）www.hkexnews.hk 及本公司的網 站 www.yan ...

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia with a target price of 43.2 HKD [3][11]. Core Insights - The company reported a stable operational performance in Q2 2024, with an average coal price of 181 AUD/ton, remaining relatively flat quarter-on-quarter. The total coal sales volume reached 8.6 million tons, a 3% increase from the previous quarter [1][2]. - The company is expected to maintain a balanced coal price throughout the year, with a cash operating cost guidance of 89-97 AUD/ton, indicating strong profit margins [1][9]. - The dividend policy is attractive, with a commitment to distribute at least 50% of net profit or free cash flow, excluding non-recurring items [1][10]. Financial Performance Summary - Revenue for 2024 is projected at 7,231 million AUD, a decrease of 7% from 2023, while net profit is expected to be 1,380 million AUD, down 24.1% [2][10]. - The earnings per share (EPS) forecast for 2024 and 2025 is 1.05 AUD and 1.19 AUD, respectively [1][10]. - The company maintains a competitive advantage in the Australian coal industry with a strong cash position of 1.55 billion AUD as of June 30, 2024 [1][9]. Production and Sales Outlook - The total coal production guidance for the year remains unchanged at 35-39 million tons, with expectations for recovery in output from the Hunter Valley and Morabbin mines in the second half of the year [1][8]. - The average coal price is expected to stabilize, with the metallurgical coal market also showing signs of balance [1][8]. Cost Structure and Profitability - The cash operating cost is projected to remain at the lower end of the guidance, indicating robust profitability [1][9]. - The company has a competitive edge in terms of cost structure, with no interest-bearing debt and a significant cash reserve [1][9].

Investment Rating - The report maintains a BUY rating for Yancoal Australia with a target price of HK$45, indicating a potential upside of 23.1% from the current price of HK$36.55 [4][12]. Core Insights - Yancoal's 2Q24 sales volume increased by 1% year-on-year, with a total attributable sales volume of 8.6 million tonnes. The company remains confident in achieving its full-year sales volume target of 37.3 million tonnes [2][12]. - The average selling price (ASP) for thermal coal decreased by 17% year-on-year to A$163 per tonne, while metallurgical coal ASP dropped by 21% to A$318 per tonne. The blended ASP fell by 20% to A$181 per tonne [2][12]. - Yancoal's financial position is solid, with a gross cash balance of A$1.55 billion as of the end of June 2024, indicating a strong net cash position moving forward [2][12]. Sales Volume and Revenue - In 2Q24, attributable sales volume for thermal coal was 7.5 million tonnes, up 3% year-on-year, while metallurgical coal sales volume was 1 million tonnes, down 17% year-on-year. Total attributable sales volume for 1H24 grew 17% year-on-year to 16.8 million tonnes [2][6]. - The estimated revenue for 2Q24 was approximately A$1.5 billion, reflecting a 20% decrease year-on-year but a 3% increase quarter-on-quarter [2][14]. Financial Performance - The report projects a full-year revenue of A$7.133 billion for 2024, with a net profit forecast of A$1.477 billion, down from A$1.819 billion in 2023 [14][17]. - The earnings per share (EPS) for 2024 is estimated at A$1.12, with a price-to-earnings (P/E) ratio of 6.2x [14][17]. Cost and Production Guidance - Yancoal's operating cash cost is projected to be between A$89 and A$97 per tonne, reflecting a year-on-year change of -7% to +1% [2][12]. - The company maintains its full-year guidance for attributable saleable production at 35-39 million tonnes, which represents a year-on-year increase of 5% to 17% [2][12].

Investment Rating - The report maintains a BUY rating for Yancoal Australia with a revised target price (TP) of HK$45, up from HK$40, indicating a potential upside of 17.3% from the current price of HK$38.35 [2][12]. Core Insights - The suspension of the Grosvenor metallurgical coal mine due to a fire incident is expected to last several months, leading to a reduction in global metallurgical coal export volume by approximately 0.8%. This situation is anticipated to drive up met coal prices, positively impacting Yancoal's average selling price (ASP) in the second half of 2024 and the first half of 2025 [2]. - The earnings forecast for Yancoal has been revised upwards by 7% for 2024 and 9% for 2025, reflecting the expected increase in ASP due to higher coal prices [2]. - The report highlights that Yancoal is trading at a price-to-earnings (P/E) ratio of 6.5x for 2024E and offers a yield of 7.7%, making it attractive for investors seeking safety and high dividends [2]. Financial Summary - Revenue for FY24E is projected at AUD 7,133 million, down 8.3% year-on-year, while net profit is expected to be AUD 1,477.1 million, a decline of 18.8% [3]. - The earnings per share (EPS) for FY24E is estimated at AUD 1.12, with a P/E ratio of 6.5x and a return on equity (ROE) of 16.8% [3]. - The company’s net gearing is projected to improve to -25.5% in FY24E, indicating a strong balance sheet position [3]. Market and Production Insights - The report notes that the benchmark semi-soft coking coal price has dropped approximately 28% year-on-year to US$152 per tonne in Q1 2024, but is expected to stabilize following the Grosvenor incident [2]. - Yancoal's total marketable coal production for 2024E is estimated at 49.5 million tonnes, with a sales volume of 37.3 million tonnes, including 32.1 million tonnes of thermal coal and 5.2 million tonnes of metallurgical coal [5][6]. - The average selling price for thermal coal is projected to be AUD 170 per tonne, while metallurgical coal is expected to average AUD 270 per tonne in FY24E [5]. Valuation and Assumptions - The valuation is based on net present value (NPV) calculated from future cash flows of reserves, with long-term price assumptions for thermal and metallurgical coal set at AUD 130/t and AUD 200/t respectively starting in 2027E [12]. - The report assumes a weighted average cost of capital (WACC) of 6.9% and an AUD/HKD exchange rate of HK$5.27 [12]. Share Performance - Yancoal's share price has shown significant performance, with a 1-month increase of 18.0% and a 3-month increase of 42.8% [3]. - The company has a market capitalization of HK$50,638.9 million, with an average turnover of HK$69.9 million over the past three months [3]. Peer Comparison - Yancoal's P/E ratio of 6.5x for FY24E is competitive compared to peers, with Whitehaven Coal at 9.0x and New Hope Corporation at 8.0x [14]. - The dividend yield for Yancoal is projected at 7.7%, which is attractive compared to the average yield of 5.0% for its peers [14].

Production and Sales Performance - Yancoal Australia achieved a record production of 60.2 million tons of raw coal in 2023, a 19% increase compared to 2022[6]. - The equity sales volume reached 33.4 million tons, reflecting a 14% growth year-over-year[6]. - Yancoal's coal production reached 75 million tons, with a total saleable coal production of 60 million tons, maintaining a strong operational performance[9]. - The company reported a total coal production of 20.4 million tons in 2023[41]. - The company’s Hunter Valley joint venture produced 17.2 million tons of raw coal in 2023[42]. - The total raw coal production increased by 19% from 50.5 million tons in 2022 to 60.2 million tons in 2023, driven by significant contributions from the major assets of Morabir, Walker, and Hunter Valley, which rose by 28% to 52.9 million tons[158]. - The total saleable coal production rose by 12% from 38.9 million tons in 2022 to 43.6 million tons in 2023, with the major assets contributing to an 18% increase to 38.5 million tons[158]. - The equity saleable coal production, excluding Zhongshan, rose by 14% from 29.4 million tons in 2022 to 33.4 million tons in 2023, while including Zhongshan, it increased by 12% to 34.5 million tons[161]. - Power coal production increased by 17% from 24.7 million tons in 2022 to 28.8 million tons in 2023, while metallurgical coal production decreased by 5% to 5.7 million tons[161]. Financial Performance - Yancoal Australia achieved a total revenue of AUD 3.5 billion for the fiscal year 2023, with an operating EBITDA of AUD 1.8 billion, reflecting a 51% EBITDA margin[8]. - The company declared a total dividend of AUD 918 million for the fiscal year 2023, including a fully franked interim dividend of AUD 0.37 per share and a fully franked final dividend of AUD 0.325 per share[8]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[94]. - The profit attributable to Yancoal Australia shareholders decreased by 49% from AUD 3.586 billion in 2022 to AUD 1.819 billion in 2023[186]. - Operating EBITDA for 2023 was AUD 3.517 billion, a decrease of 50% compared to AUD 6.384 billion in 2022[186]. - The company’s basic earnings per share decreased by 49% from AUD 271.6 in 2022 to AUD 137.8 in 2023[186]. - The company’s total operating expenses increased by 61% from AUD 297 million in 2022 to AUD 334 million in 2023[188]. - The company’s coal sales revenue was significantly impacted by market conditions, leading to a 28% decline in overall revenue[188]. Cost Management - Cash operating costs per ton of product coal were AUD 96, slightly up from AUD 94 in 2022, despite increased production levels[6]. - The cash operating cost per ton of coal increased from AUD 94 in 2022 to AUD 96 in 2023, representing a rise of AUD 2 per ton[199]. - The cash operating cost in the first half of 2023 was AUD 109 per ton, while it decreased to AUD 86 per ton in the second half, a reduction of AUD 23 per ton (21%)[199]. - The total production cost (excluding royalties) for 2023 was AUD 122 per ton, slightly down from AUD 123 per ton in 2022[199]. - The total production cost for 2023 was AUD 143 per ton, compared to AUD 159 per ton in 2022[199]. Safety and Employee Well-being - The rolling total recordable injury frequency rate improved to 5.1, a significant reduction from 7.9 at the end of 2022[5]. - The total recordable injury frequency rate improved to 5.1, significantly lower than the industry average of 8.3, demonstrating the company's commitment to employee safety[8]. - The company is in the second year of implementing its "Safety Every Day" program, aimed at enhancing health, safety, and training management across its operations[8]. - Over 90% of the company's employees have started or completed the "Safety Every Day" training program in 2023[165]. - The company’s ongoing mental health program is in its third phase, emphasizing the importance of employee well-being and support[8]. Community Engagement and Sustainability - Yancoal's community support programs contributed AUD 800,000 to 154 organizations, reflecting its commitment to local community engagement[8]. - The company donated AUD 1.7 million to local and regional health, environment, education, arts, culture, and community programs in 2023[175]. - The company is addressing climate-related challenges and has committed to sustainability initiatives as part of its long-term strategy[96]. - The company has established a dedicated sustainability function, with the executive general manager reporting directly to the CEO[168]. - The company plans to release its first sustainability report in April 2024, detailing its environmental, social, and governance (ESG) data[166]. Governance and Compliance - Yancoal Australia has a strong commitment to corporate governance and compliance, with a dedicated legal and compliance director[62]. - The board of directors includes members with extensive experience in finance and management, enhancing corporate governance[83][85][88]. - The company has established a nomination and remuneration committee to oversee executive compensation and performance evaluations[122]. - The company has implemented strict governance processes to enhance sustainability performance across its operations[176]. Market Expansion and Strategic Initiatives - Yancoal Australia expanded its international customer base, selling coal to 14 target markets, with significant increases in exports to China[6]. - The company is focused on expanding its market presence and exploring new technologies to enhance operational efficiency and sustainability[8]. - The company is considering diversification strategies to expand beyond coal and explore alternative energy opportunities[5]. - Market expansion efforts include entering two new international markets, expected to contribute an additional $30 million in revenue[91]. - The company is actively engaged in the development of new technologies for coal production[39]. Executive Compensation - The executive compensation framework aims to align with shareholder performance, focusing on economic performance as a core part of the overall compensation plan design[110]. - The short-term incentive plan rewards executives based on achieving financial, operational, and strategic priorities, with 50% paid in cash and 25% deferred to rights[110]. - The long-term incentive plan rewards participants based on long-term performance, with 60% tied to earnings per share conditions and 40% to cost target conditions[110]. - The highest individual executive remuneration in 2023 was AUD 5,908,777 for David James Moult, which is 67% of his performance-related pay[141]. - The total remuneration for executives in 2023 amounted to AUD 8,778,229, a decrease of 60% compared to AUD 9,109,103 in 2022[141].

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia with a target price of 34.78 HKD [3][11]. Core Insights - The company reported a strong start to 2024 with coal sales volume reaching 8.3 million tons, a significant year-on-year increase of 41%, despite a quarter-on-quarter decline of 18% [1][11]. - The average coal price in Q1 was 180 AUD/ton, with thermal coal averaging 159 AUD/ton (down 12% quarter-on-quarter) and metallurgical coal at 334 AUD/ton (up 14% quarter-on-quarter) [1][11]. - The company has maintained a competitive cash operating cost guidance of 89-97 AUD/ton, indicating strong profit margins [1][11]. - The dividend policy is attractive, committing to pay at least 50% of net profit or free cash flow [1][11]. Production and Sales - The Q1 coal production was 8.8 million tons, a 49% increase year-on-year, while it decreased by 9% quarter-on-quarter due to mining continuity and seasonal wet weather [1][11]. - The annual production guidance remains unchanged at 35-39 million tons, with expectations for higher production in the second half of the year [1][11]. Financial Projections - The report forecasts 2024 and 2025 EPS at 1.05 AUD and 1.04 AUD respectively, with a P/E ratio of 6.5x for 2024 [1][11]. - Revenue projections show a decline from 7,778 million AUD in 2023 to 7,231 million AUD in 2024, reflecting a decrease of 7% [2][11]. - Net profit is expected to decrease from 1,819 million AUD in 2023 to 1,380 million AUD in 2024, a decline of 24% [2][11]. Cost Structure - The cash operating cost per ton is projected to be 93 AUD in 2024, down from 95 AUD in 2023 [9][11]. - The total production cost, including depreciation and amortization, is expected to be 137 AUD per ton in 2024 [9][11]. Market Conditions - The report notes that despite a softening in coal prices, the overall market remains relatively balanced due to strong export supplies from Australia and Indonesia [1][11]. - The average coal price is expected to stabilize throughout the year, with thermal coal prices projected to be 173 AUD/ton in 2024 [8][11].