Yanoal repays a massive debt in advance

PERTH (miningweekly.com) – ASX-listed coal miner Yancoal will pay off $1 billion in debt on Oct. 4 from available cash.

The company said Monday that its decision to undertake another early debt repayment was made possible by robust coal prices and its focus on optimizing its capital structure to deliver future value to shareholders.

The prepayment consists of payments to the existing syndicated facility and its related party unsecured loans, and is expected to result in a reduction of nearly $207 million in total finance costs over the loan periods.

“Combined with debt prepayments in October 2021 and July 2022, the $1 billion scheduled debt prepayment results in Yancoal prepaying more than $2.3 billion in debt over the past 12 months,” said the CEO. David Moult.

“After making the prepayment, Yancoal will have total debt of $792 million, the majority of which is $301 million due in the second half of 2024 and $307 million due in the second half of 2026, respectively. The debt maturity profile improves significantly after prepayment, with the debt expiry date more evenly distributed over the next five years.

Yancoal continues to build cash and has maintained a strong net cash position since July 2022; it will publish its cash balance for the end of September 2022 in the third quarter production report.

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