Building a coal portfolio

Yari Resources (ASX:YAR), formerly Yari Minerals, is pursuing a larger coal footprint in Queensland's Bowen Basin. The central development is a binding conditional agreement, announced on 3 August 2026, to acquire the Arcadia Coal Project, an exploration-stage asset that would sit alongside its existing Rolleston South project.

What the company does

Yari's flagship is the 100-per-cent-owned Rolleston South Coal Project, about 20 kilometres south of Rolleston in the Bowen Basin. According to company documents, it holds a JORC (2012) resource of 222.9 million tonnes of thermal coal, made up of 33.7 million tonnes indicated and 189.2 million tonnes inferred, with potential for upgrade to semi-soft coking coal. That is a resource estimate, not a reserve, and no mine has been approved. The company also holds two granted exploration licences in Western Australia's Pilbara.

The half-year report noted low-ash results from drill-hole testing at Rolleston South and an anticipated product ash of around 7 to 8 per cent with an estimated 85 per cent yield. These are company estimates from early testing.

The Arcadia deal

Yari signed a binding conditional share sale and purchase agreement for 100 per cent of Northern Comet Resources, which holds the Arcadia permits, with Arcadia sitting about 85 kilometres south of Rolleston. EPC 1772 carries a JORC 2012 resource of 282 million tonnes, made up of 164 million tonnes indicated and 118 million tonnes inferred. Yari says the deal would lift its coal resource base above 500 million tonnes.

Managing director Courtney Taylor has said the major consideration is linked to project success. A 1.5 per cent gross Revenue Royalty to Utopia Resources would apply on completion. Completion is conditional, including on Shareholder approval, and a notice of general meeting was lodged on 21 August 2026. A cleansing notice dated 28 September 2026 relates to the issue of 147,594,744 shares as part consideration.

Funding and corporate changes

Yari issued 209,865,951 shares under the first Tranche of a Placement announced on 3 August 2026, according to an 11 August cleansing notice. The notice does not give the issue price or total size, and we could not locate those figures, so the dilution effect cannot be quantified here. The company also appointed Courtney Taylor as managing director on 9 June 2026, and its name change was approved at the 29 May 2026 annual general meeting.

We were unable to read the June 2026 quarterly report, so cash and burn figures are omitted rather than estimated. Readers should consult the Appendix 5B lodged on 31 July 2026.

Risks and sector context

Queensland coal projects depend on Commodity prices, rail and port access, approvals and financing. Rolleston South is within 40 kilometres of the Blackwater rail system, according to the company, but proximity does not mean access has been secured. Company-specific risks include reliance on Equity raisings at very low share prices, shareholder approval for the acquisition, and the early stage of both assets. Thermal coal also faces long-term Demand uncertainty, an interpretation rather than company guidance.