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Learn moreOperational Performance and Strategic Positioning
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Saleable coal production grew 8% to 11.5 million tonnes, exceeding guidance due to the successful ramp-up of New Acland and Bengalla returning to nameplate capacity.
Management attributed the 10% decline in average realized price to $145 per tonne to broader market cyclicality, though low-cost assets maintained a resilient $45 per tonne margin.
Bengalla's performance was impacted by a temporary increase in strip ratio and pit resequencing following significant weather events late in the 2025 financial year.
The group shifted its primary safety metric to High Potential Event Frequency Rate (HPEFR) to focus on preventing fatal or life-altering risks rather than just traditional injury counts.
Strategic positioning is built on the belief that while coal's share of global power may decline, total power demand and supply shortfalls will support attractive pricing for Australian exports.
Capital allocation prioritized organic growth, with $161 million reinvested into assets alongside $206 million returned to shareholders via fully franked dividends.
Growth Outlook and Guidance Assumptions
New Acland is projected to reach 4 million tonnes of production in FY27, with a target of 5 million tonnes per annum within the next 18 months.
Unit costs are expected to decrease as New Acland's fixed cost base is spread over higher production volumes during its continued ramp-up phase.
Management anticipates coal prices will remain stable or move higher, supported by Asian countries switching from gas to coal and potential supply disruptions in Indonesia and China.
Future production growth is characterized as low-risk and cost-effective, focusing on brownfield extensions rather than greenfield projects to align with regulatory environments.
The company maintains a disciplined capital management framework and aims to keep sufficient cash on the balance sheet to fund organic growth initiatives, having previously identified $300 million as a sensible minimum cash balance.
Strategic Risks and Structural Factors
Rail capacity remains a significant dependency for New Acland, with ongoing delays to the Cross River Rail project and industrial actions posing risks to consistent ramp-up.
Diesel costs are expected to remain heightened; however, management notes these are historically correlated with coal prices, providing a natural revenue hedge.
The group holds a substantial franking account balance of approximately $650 million post-dividend, which it intends to continue utilizing for shareholder value.
Rehabilitation efforts are ongoing, with approximately 35% of the 3,086 hectares of disturbed land across both major mines already rehabilitated.