Should I buy Yancoal stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Yancoal for over three years. Every month, hundreds of thousands of users in Australia trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Yancoal.

What is Yancoal?

The Yancoal stock price

The price of Yancoal stock is rising this week. Yancoal is currently trading at $6.20 AUD, with a 24-hour gain of $0.17 (+2.82%) and an impressive 7-day increase of 7.64%. The company holds a market capitalisation of $8.19 billion and averages 3.28 million shares traded daily over the past three months. The P/E ratio stands at 6.74, the dividend yield is 8.4–9.0%, and the beta is -0.01, indicating a very low correlation with the overall market. This combination of strong yield and relative price stability may interest both income-focused and defensive investors.

Our full analysis on Yancoal stock

Having reviewed Yancoal’s latest financial results and tracked its stock performance over the past three years, we have used a rigorous approach, integrating key financial indicators, technical signals, market data, and a comparative assessment with sector peers via our proprietary algorithms. These comprehensive diagnostics offer an in-depth perspective. So, why might Yancoal stock once again become a strategic entry point into the Australian resources sector in 2025?

Recent performance and market context

Over the past year, Yancoal’s share price has experienced notable volatility, finishing at AUD 6.20 as of July 2025. The intraday move was +2.82% (+AUD 0.17), with the stock delivering a 7.64% gain over the past week, demonstrating a rapid short-term rebound. Although the 12-month change stands at -13.53%—mirroring a cyclical decline in coal prices—the longer-term five-year trajectory is undeniably robust, with total appreciation of over 200%. The company’s resilience is especially impressive considering its strong financials despite sector-wide pricing pressure. Recent announcements confirm Yancoal's AUD 687 million dividend distribution (with a 100% franked final dividend), strengthening its appeal for income-oriented investors. Meanwhile, Asia-Pacific demand for Australian coal remains sturdy, supporting both revenue generation and sustained export volumes. Macro conditions are also favourable: resilient industrial activity across major Asian economies and persistently high global coal prices reinforce both short-term profitability and medium-term outlook for major producers like Yancoal.

Technical analysis

Technical signals are increasingly supportive for a renewed upward trend in Yancoal shares. On the momentum side, the 14-day RSI stands at 75.92, entering the overbought zone—a potential precursor to further upside provided bullish sentiment prevails. The MACD indicator is positive at 0.103, registering a recent bullish cross that often accompanies the start of a new upward phase. Notably, all key moving averages (20, 50, 100, and 200 days) show strong buy signals: the current price trades comfortably above each, underscoring sustained medium-term momentum. Technical support is clustered at AUD 6.07–6.13, suggesting that price corrections are likely to be met by buyers. Immediate resistance comes into play at AUD 6.29 and 6.39, but bullish volume and a robust technical consensus ("Strong Buy" from multiple sources) point to high probability of a successful breakout. The most recent technical summaries yield 12 buy signals from moving averages and 8 from standard indicators, highlighting the ongoing accumulation phase.

Fundamental analysis

From a fundamental standpoint, Yancoal's metrics are compelling. The group reported 2024 revenue of AUD 6.86 billion, with operational EBITDA at AUD 2.58 billion (a very healthy 37% margin). While top-line revenues decreased 12% year-on-year due to lower coal prices, overall profitability and dividend sustainability remain exceptional—net income reached AUD 1.22 billion, and the payout ratio sits at 56%. The valuation is notably attractive: the P/E is just 6.74 and price-to-book is below 1 (0.88), suggesting efficient capital allocation and a discount relative to historical averages and sector peers. Yancoal’s ability to maintain positive cash flows—AUD 2.13 billion in 2024, a 69% increase over the prior year—demonstrates operational excellence and disciplined cost control. The group’s net cash position, with zero net debt (excluding lease obligations), is a rare strength in today’s volatile commodity environment. Strategic expansion is also evident: production volumes grew +10% in 2024, and Yancoal controls large-scale assets with a long reserve life. The group’s dominant domestic and Asian market positions, underpinned by competitive cost structures and scalable operations, establish it as one of the world’s most efficient coal producers and a consistent cash generator.

Structural strengths such as a robust balance sheet, high-quality reserves, diversified operations across New South Wales and Queensland, and continued cost reductions—even in an inflationary context—further enhance the stock’s investment profile. The company’s long track record of operational reliability, scale, and strategic relevance to the energy sector reinforce its status as a sector bellwether.

Volume and liquidity

Trading volume for Yancoal is healthy, averaging 3.28 million shares daily over the past three months, with a market capitalisation of AUD 8.19 billion. This level of liquidity fosters investor confidence and supports stable price formation, making Yancoal accessible for both institutional and retail players. The free float of 383 million shares enables dynamic valuation, while still allowing for potential upward price movement in response to large inflows or accumulation by key stakeholders. Such volume patterns suggest that the market has conviction in the company’s outlook and underpin Yancoal’s inclusion in major Australian indices. This liquid profile reinforces the stock’s standing as a solid instrument for both long-term portfolios and tactical investment strategies.

Catalysts and positive outlook

• Strategic expansion: The company maintains a “war chest” of AUD 1.2 billion, specifically earmarked for accretive acquisitions and strategic growth, allowing for opportunistic scaling if high-quality assets become available on the market.
• Ongoing diversification: While primarily a thermal coal exporter, Yancoal is actively evaluating expansion into adjacent energy and mining segments, aimed at long-term sustainability in a rapidly evolving sector.
• Market leadership: As the top maritime coal exporter in Australia, Yancoal is well-placed to benefit from continued Asian demand, especially given its extensive relationships with major customers in China.
• Favourable regulatory environment: The group’s 100% franked dividend policy brings significant after-tax income advantages for local investors, reinforcing its attractiveness in tax-sensitive portfolios.
• Operational guidance: Production guidance for 2025 remains solid at 35–39 million tonnes, supported by stable cash costs (AUD 89–97/tonne) and targeted capital expenditure (AUD 750–900 million) to deliver sustainable future growth.
• Resilient sector trends: While global coal’s long-term trajectory faces some headwinds, near- and medium-term fundamentals are robust due to Asia’s continued reliance on thermal power, ensuring that demand remains above replacement levels.

These factors, coupled with proven execution by management and a focus on cost competitiveness, position Yancoal to harness value from any upturn in commodity cycles or from effective execution of its M&A strategy.

Investment strategies

• Short-term positioning: Investors can target momentum-based gains, especially as the share price approaches and breaks above immediate resistance (AUD 6.29, AUD 6.39). The recent bullish technical confirmation, with all moving averages signalling an uptrend, supports tactical entries.
• Medium-term approach: With operational results and dividend payments providing clear quarterly catalysts, a medium-term hold allows investors to benefit from both earnings releases and yield capture periods. The robust balance sheet and expansion roadmap underpin this outlook.
• Long-term value: Yancoal’s enviable cost structure, market leadership, world-class reserves, and ongoing expansion initiatives argue strongly for a core, long-term holding for those seeking exposure to the energy and resources sector. The company’s defensive qualities—including low beta (-0.01), financial resilience, and attractive yield—suggest long-term total return potential.

The current price, lying only modestly below its 52-week high and comfortably supported by volume and technical base-building, offers an ideal entry point for a broad range of investor profiles. Entry near the AUD 6.20–6.13 support zone places buyers in a position to benefit from both mean reversion and any positive re-rating by the market or analysts.

Is it the right time to buy Yancoal?

In summary, Yancoal embodies a rare combination of sector leadership, robust financial health, attractive dividends, and strong operational execution. The technical landscape is clearly supportive, sentiment is underpinned by real liquidity and institutional interest, and the company has ample catalysts for further upside. The current valuation is below what fundamentals justify, suggesting excellent re-rating potential. For investors searching for stable income, low beta market exposure, and sustained growth, Yancoal seems to represent an excellent opportunity in the Australian resources sector right now. With key events on the horizon and a track record of delivering shareholder value, the stock may well be entering a new bullish phase that merits close attention.

Yancoal presents a compelling investment case, bringing together stability and growth potential—positioning itself as one of the most attractive tactical and strategic opportunities in the market for 2025.

How to buy Yancoal stock in Australia?

Buying Yancoal stock online is both simple and secure when using a regulated Australian broker. You can choose between two main methods: purchasing shares outright (spot buying) or trading using Contracts for Difference (CFDs), each with its own risk and cost profile. Spot buying is ideal for long-term investors wanting direct ownership, while CFDs allow for leveraged trading on price movements. For your convenience, we provide a broker comparison further down the page.

Spot buying

Cash purchase of Yancoal shares means you buy and own the stock directly through your brokerage account. This method typically incurs a fixed commission per order, generally around $5–$10 AUD depending on your broker.

Example of a share purchase

If the Yancoal share price is $6.20 AUD, you can buy around 160 shares with a $1,000 stake, including a brokerage fee of around $5.

• ✔️ Gain scenario:
• If the share price rises by 10%, your shares are now worth $1,100.
• Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Yancoal shares means speculating on price changes without owning the underlying stock. With CFDs, you pay a spread (the difference between buy and sell prices) and, for leveraged positions held overnight, a daily financing charge.

CFD Gain Scenario Example

You open a CFD position on Yancoal shares, with 5x leverage. This gives you a market exposure of $5,000.

Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before you invest, always compare the fees, features, and terms offered by different brokers. Whether you opt for spot buying or CFD trading, the right approach depends on your investment goals and risk profile. For detailed comparisons, see our broker comparator further down the page.

Our 7 tips for buying Yancoal stock

The latest news about Yancoal

Yancoal stock has advanced over 7% in the past week, outperforming the ASX energy sector. This strong momentum comes as the company's share price climbed to AUD 6.20, supported by a bullish technical outlook with a MACD bullish signal line cross and robust buy signals from moving averages and oscillators. The stock’s surge stands out in the Australian context, where energy equities have generally been trading sideways, highlighting investor confidence specific to Yancoal’s business model and prospects.

Production volumes have increased significantly, with a 10% rise in saleable coal output compared to last year. For Australian stakeholders, this growth points to ongoing operational efficiency across key sites in New South Wales and Queensland. Yancoal’s ability to scale output while cutting operational cash cost per tonne by 3% amidst inflationary pressures demonstrates superior local execution and cost discipline, reinforcing its competitive edge within the domestic sector.

Yancoal continues to reward Australian shareholders with a sector-leading dividend, fully franked for local tax efficiency. The latest final dividend of AUD 0.52 per share (100% franked) and an attractive yield between 8.39% and 9.01% enhance Yancoal’s appeal for income-oriented investors in Australia. The dividend policy further leverages resident investors’ tax advantages due to Australia’s franking credit system, setting Yancoal apart from many peers on the ASX.

The company maintains a fortress balance sheet with zero net debt and strong cash reserves. Ending 2024 with AUD 2.46 billion in cash and no net debt, Yancoal offers high resilience and flexibility for future strategic investments. This financial strength supports future dividends and potential acquisitions, positioning the company as a stable, growth-ready operator in the Australian energy resource landscape.

Market signals and analyst consensus have turned strongly positive, with technical indicators rated as “Strong Buy.” Yancoal’s alignment of 12 buy signals across major moving averages and bullish trend indicators demonstrates robust institutional accumulation. These inputs provide professional financial analysts in Australia with additional confirmation of the stock’s currently favourable setup, ahead of major company reports and seasonal demand cycles.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.