Yancoal Australia Ltd (ASX: YAL) shares are flat today but still outpacing the sinking benchmark.
Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed yesterday trading for $6.95. In early morning trade on Thursday, shares are changing hands for $6.95 apiece. (I’ll let you do the maths!)
For some context, the ASX 200 is down 1% at this same time.
Here’s what’s happening.
Yancoal shares outerperforming amid AGM
Yancoal shares are outpacing the losses posted by ASX 200 today as the miner holds its annual general meeting (AGM).
On the environmental front, the company said it intends to develop a Climate Transition Plan to “strengthen climate resilience” and support its P4 Sustainability Strategy. Yancoal published its annual sustainability report in April.
Reviewing the company’s 2025 performance, management highlighted that run of mine (ROM) coal production of 67 million tonnes (on a 100% basis) was up 7% from 2024, while saleable production of 50.8 million tonnes increased by 6%.
However, with 2025’s average realised coal prices sliding 17% from 2024 to $146 per tonne, Yancoal’s full-year revenue declined by 13% to $5.95 billion.
Underscoring the premium price of steel making coal, Yancoal received an average price of $203 per tonne for its metallurgical coal compared to $136 per tonne for its thermal coal, which is more broadly used for power generation.
Indeed, in April, Yancoal inked a deal valued at some US$2.4 billion to acquire an 80% interest in the Kestrel Coal Mine, a long-life metallurgical coal mine located in Queensland’s Bowen Basin.
“Kestrel delivers increased scale and diversification to Yancoal’s portfolio and is expected to contribute premium metallurgical coal into our product mix,” Yancoal CEO Sharif Burra noted.
On the passive income front, Yancoal noted that it has now paid out more than $4 per share of unfranked and fully-franked dividends since 2018. That equates to some 58% of the current Yancoal share price.
What’s next for the ASX 200 coal stock?
Looking to what could impact Yancoal shares in the months ahead, the miner provided full-year 2026 guidance for attributable saleable production of 36.5 million to 40.5 million tonnes. That compares to 38.6 million tonnes in 2025.
As for the impact of the Middle East conflict, Yancoal expects 2026 cash operating costs of $90 to $98 per tonne. That’s up from $92 per tonne last year, with higher diesel costs expected to drive some of that increase.
On the capex front, Yancoal forecasts attributable full-year capital expenditure of $750 million to $900 million, compared to $750 million in 2025.
Management noted that, “Continual reinvestment ensures assets remain large-scale and low cost.”
The post Buying Yancoal shares? Here’s why the ASX 200 coal stock is outperforming today appeared first on The Motley Fool Australia.
Should you invest $1,000 in Yancoal Australia right now?
Before you buy Yancoal Australia shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Yancoal Australia wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Here are the top 10 ASX 200 shares today
- Here are the top 10 ASX 200 shares today
- ASX 200 energy shares lead and market finally cracks 8-day losing streak
- Top 10 ASX shares bought and sold in April
- What are experts saying about these ASX 200 stocks soaring higher today?
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.