The All Ordinaries Index (ASX: XAO) is up 0.2% at the time of writing, with no help at all from this high-yielding ASX All Ords share.
Before today's big fall, the ASX coal stock was up 34% in 2024, buoyed in part by its market-beating dividend yield.
But things took a turn for the worse this morning.
Shares in the ASX All Ords coal miner closed yesterday at $6.96. In late morning trade on Tuesday, they were changing hands for $5.56, down 20.2%.
Any guess?
If you said Yancoal Australia Ltd (ASX: YAL), go to the front of the virtual line.
The coal miner has come under heavy selling pressure after releasing its half-year results for the six months ending 30 June (1H 2024).
Here's what we know.
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ASX All Ords share dives on 57% profit decline
- Revenue of $3.14 billion for the six months, down 21% from 1H 2023
- Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of $990 million, down 46% from the prior corresponding half
- Profit after tax of $420 million, down 57% year on year
- Net cash as at 30 June of $1.42 billion, up 54%
What else happened during the half year?
The Yancoal share price looks to be under additional selling pressure after the board opted not to declare an interim dividend.
That's a big deal for passive income investors because, at yesterday's close, the ASX All Ords share was trading on a trailing dividend yield of 10.0%.
Yancoal said that rather than paying an interim dividend, it will retain the cash to provide flexibility for potential corporate initiatives. Management left open the door to distributing the cash to shareholders at a future date if it's not otherwise utilised.
The 21% decline in half-year revenue was driven by a 37% decrease in Yancoal's realised coal price of AU$176 per tonne. That exceeded the benefit achieved from a 17% increase in attributable coal sales.
Operating cash costs were $101 per tonne, not including government royalties.
In other key metrics, run of mine (ROM) coal production of 27.9 million tonnes was up 7% from 1H 2023.
What did management say?
Commenting on the results sending the ASX All Ords share crashing today, Yancoal CEO David Moult said, "Over the past eighteen months, Yancoal reestablished its operational profile following several years of disruption."
Moult added:
Cost inflation is a constant challenge in the coal sector, mining industry and broader economy. We are combating inflation by reinvesting in our Tier 1 assets, maximising production and optimising our cost base.
During the first half we produced an EBITDA of close to $1 billion at a 32% margin.
Delivering on our planned production uplift during the second half will go a long way toward setting the tone for a stronger financial performance over the remainder of 2024.
What's next for the ASX All Ords share?
Looking at what could impact the Yancoal share price in the months ahead, the ASX All Ords share expects to operate at similar levels in the second half of 2024 as it did in the second half of 2023.
The coal miner left production and cost guidance unchanged at:
- 35Mt to 39Mt attributable saleable production
- $89 to $97/tonne cash operating costs
- $650 to $800 million attributable capital expenditure
Yancoal share price snapshot
With today's intraday loss factored in, the ASX All Ords share remains up 14% over 12 months.
