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YAL - Yancoal Australia

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Yancoal Australia Limited (YAL) is an Australian based coal producer and developer operating open cut and underground coal mines in New South Wales, Queensland and Western Australia. Yancoal produce metallurgical and thermal coal products for export, where they are used primarily in the steel and power industries in Asian markets.

Yancoal Australia owns or manages six operating mines, three exploration projects and major infrastructure shareholdings. Yancoal also has access to a growing portfolio of intellectual property assets, including the proprietary Longwall Top Coal Caving (LTCC) technology, Ultra Clean Coal (UCC) patented technology and Premier Char, a patented technology that allows an innovative process for the production of coal char from low rank coals.

http://www.yancoal.com.au
 
Reviving this thread and moving any potential discussion on YAL to here from WHC thread.

Big run up, what will happen when (or if) the gap closes ?

(click to expand)
 

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3 closes at around 40c
Close above this a couple of times
will be a strong sign of support
 
This is a sight to behold.... it is really not something you'd see often on the ASX. A 23.6-to-1 rights issue, @ US 10c. A company with $400m market cap trying to raise $3B...

It is quite a unique case. It's not a recapitalisation which is a common cause for massive dilution, but it's YAL being used as the vehicle for a huge acquisition... the RIO C&A acquisition. I wonder if this deal will turn YAL into an invest-able listed entity.

Too bad there wasn't any borrow on this stock when it opened at 40c.
 
I need a genuine advice whether it's worth taking up the entitlement offer by YAL for my existing share of 1300. I am entitled to around 30000 at AUD1.25 / share. Not sure whether I should take the shares on offer and how much ? Thank you in advance
skc said:
This is a sight to behold.... it is really not something you'd see often on the ASX. A 23.6-to-1 rights issue, @ US 10c. A company with $400m market cap trying to raise $3B...

It is quite a unique case. It's not a recapitalisation which is a common cause for massive dilution, but it's YAL being used as the vehicle for a huge acquisition... the RIO C&A acquisition. I wonder if this deal will turn YAL into an invest-able listed entity.

Too bad there wasn't any borrow on this stock when it opened at 40c.
Click to expand...
 
Nir said:
I need a genuine advice whether it's worth taking up the entitlement offer by YAL for my existing share of 1300. I am entitled to around 30000 at AUD1.25 / share. Not sure whether I should take the shares on offer and how much ? Thank you in advance
Click to expand...

The offer is US10c or ~$AUD 12.5c per share.... not $1.25.

Given that YAL is currently trading at around this price, there really isn't that much incentive to take up the offer to arbitrage the price difference. i.e. if you are hoping for an instant profit, it won't be there.

However, it is up to you to decide whether buying YAL @ 12.5c a share makes sense as a standalone investment.
 
Dear SKC,
Thank you for the corrected share price, certainly there is no incentive to buy the entitlement offer at the given price which is same as current trading price, however if there is growth forcaste then I will be interested me to buy as long term investment.
do you think the company will grown in the long run?

skc said:
The offer is US10c or ~$AUD 12.5c per share.... not $1.25.

Given that YAL is currently trading at around this price, there really isn't that much incentive to take up the offer to arbitrage the price difference. i.e. if you are hoping for an instant profit, it won't be there.

However, it is up to you to decide whether buying YAL @ 12.5c a share makes sense as a standalone investment.
Click to expand...
 
Nir said:
Dear SKC,
Thank you for the corrected share price, certainly there is no incentive to buy the entitlement offer at the given price which is same as current trading price, however if there is growth forcaste then I will be interested me to buy as long term investment.
do you think the company will grown in the long run?
Click to expand...

It's a coal business... the most important driver is probably coal price. I don't have a view on future coal price. I also don't have a view on the asset they have bought.
 
Hello,
Please excuse my ignorance but can anyone explain why the Yancoal ASX code has changed from YAL to YALDA and why my share holdings have deceased to about 25% of what I previously had. I have noticed that it is also "Deferred Settlement".
Regards
 
Funnyfreakinname said:
Hello,
Please excuse my ignorance but can anyone explain why the Yancoal ASX code has changed from YAL to YALDA and why my share holdings have deceased to about 25% of what I previously had. I have noticed that it is also "Deferred Settlement".
Regards
Click to expand...

Yancoal is currently consolidating its share capital, converting every 35 shares on issue to one share. As a result, the 43,962,462,588 YAL shares on issue will become 1,256,070,360 after the consolidation is complete. Here is the amended timetable as detailed in their announcement of 4 September 2018.

screenshot-stocknessmonster.com-2018.09.28-10-33-05.png


As you can see, trading has commenced in the consolidated securities (YALDA) today. Normal trading in YAL will recommence on 9 October after the new holding statements are dispatched to shareholders.

Please refer to YAL's announcement of 27 August for a more detailed explanation of why the company is consolidating its capital.
 
greggles said:
Yancoal is currently consolidating its share capital, converting every 35 shares on issue to one share. As a result, the 43,962,462,588 YAL shares on issue will become 1,256,070,360 after the consolidation is complete. Here is the amended timetable as detailed in their announcement of 4 September 2018.

View attachment 89498

As you can see, trading has commenced in the consolidated securities (YALDA) today. Normal trading in YAL will recommence on 9 October after the new holding statements are dispatched to shareholders.

Please refer to YAL's announcement of 27 August for a more detailed explanation of why the company is consolidating its capital.
Click to expand...
Gregg
I should have visited the site before leaving message with YAN COAL secretariat today.
I was wondering the presentations from YAL have cited 14 cents around per stock and the market price is $3.90. Could not find any ASX announcement either. But thanks to your posting and I got the answer why the prices are different.
Now another query I have if the company is paying down the debt why the prices are sliding down.
In my observation, I have seen whenever an Australian operation is taken over Chinese companies with default from Chinese government, the prices keep dropping down.
Not generalising but largely it is like that.
 


3.61 HKD to AUD = 0.680407 Australian Dollars
Earnings per share on ASX .6799 Earnings per share on Hang Sen 3.61 OK
Market caps 20.6HK =3.88Bau Asx 3.93Bau
Yancoal announced it's results today which the Australian market seemed to not like much and trashed the stock to the tune of 11%!!
Yancoal announced it's results today which the Hong Kong market seemed to think was pretty awesome and bought up the stock to the tune of 7%!! Currency market was relatively stable!
Annalise that!
 
Was actually wondering about the fall,one of my trend system took some recently but with a resulting price change like that, any analysis tech or fundamental does not have much use...
 
A lot of the big miners like RIO , Glencore and BHP are divesting their thermal coal assets.
YAL being a Chinese psyco environmental 'who gives a crap,' kind of player has being buying the stuff!
Coals had a pretty bad run this rolling year. So has YAL. But is still making money.
YAL HK was down 5% yesterday.
Here is where coal is at -

upload_2019-8-24_14-25-36.png
 
One of my entries for the 2022 tipping competition.

My reasoning is simply that I wanted a coal stock and this one seems well beaten up and plausibly near a bottom.

Coal because whilst there's a long term move against it, sentiment has run ahead of reality on that in my view. Coal's ultimately on the way out but it's going to be a long and drawn out transition, it's not something that's going to happen overnight there's still some life in it yet especially in the short term given there's a shortage of natural gas in Europe and in LNG form globally thus forcing some users back to coal. :2twocents
 
Maybe the reason for the quick run in Yancoal is because the Chinese have plonked a low ball bid in for the 33% they do not already own.
From Murdochs Business review
Yancoal’s Chinese parent company is considering a $US1.8bn ($2.5bn) bid to capture the remaining shares in the company, in what could be the first major test of foreign investment rules for incoming federal treasurer Jim Chalmers.
Yankuang Energy Group told the Hong Kong Exchange on Wednesday night it was considering offering convertible bonds to mop up the 37.7 per cent stake in Yancoal it does not own, worth about $US3.60 a share, which would convert to Yankuang shares on the Hong Kong exchange.

Alternatively, Yancoal holders could elect to hang on to the bonds and take fixed interest and principal repayments over time, Yankuang said.
The Hong Kong-listed energy major would only have to convince three major Yancoal shareholders to take its scrip through the offer, given only about 10 per cent of Yancoal’s ASX-listed shares are held by institutional or retail investors.

But that may not be easy, given Yankuang’s $US3.60 a share valuation is well below the $6.08 the company last traded at on the ASX, which currently values the minority holdings in Yancoal at about $3bn.
Click to expand...
Makes sense to me for the government to allow the Chinese to buy the rest, get the money from them, then ban all coal exports in the name of our new found climate change credentials.
Whats there to object to??
Mick
 
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