Newly ASX listed coal miner Yancoal has posted its first half year ASX report, posing a $415.7 million after tax for the 2011-12 year, while admitting that adverse market conditions may hamper its growth.

 

The company is now the largest pure play coal producer following the successful merger with Gloucester Coal earlier this year, a move that Yancoal’s CEO, Murray Bailey, said would mean continual benefits for the company’s stakeholders.

 

“With the integration well underway, Yancoal is now seeking to benefit from the synergies identified in the Scheme Booklet, and is reviewing expenditure across all its operations to identify other potential efficiencies,“ Mr Bailey said.

 

Despite the relatively strong results, the company has identified a number of obstacles that may hamper its continual growth, citing a depressed short-term market outlook for coal.

 

In light of the dropping coal market, Yancoal has announced it will review costs in its mining operations where possible and focus on reforming its capital expenditure on essential items and projects.

 

The company has also announced it will review expansion plans to ‘ensure that capital discipline is maintained’ while it searches for new markets for the range of coals produced by the company.

 

“The next few months will be difficult for the company as lower coal prices and the strong Australian dollar impact the business. However, Yancoal has a number of quality assets, a highly capable workforce and is well positioned to ride through the current market downturn,” Mr Bailey admitted.