Chinese-backed Yancoal Australia gained ground in today’s trade after delivering a $198.3 million operating profit for the six months to June 30 on the back of higher thermal coal prices and increased global demand.

The half-year represented a period of significant turnaround for the business (ASX:YAL) with operating EBITDA up $299.8 million on the loss of $101.5 million for the same period in 2016.

Revenue from ordinary activities jumped almost 80 per cent from the previous corresponding period to $832.8 million. However, Yancoal reported a net loss after tax $13.9 million for the period, up $166.6 million on the previous year.

Total output (also known as run-of-mine) during the period was 13.8 million tonnes while saleable coal came in at 10.7Mt.

Yancoal reported overall production for the period was within expectations. The tier one Moolarben coal complex maximised excellent mining conditions for high extraction and processing rates. The Moolarben longwall is scheduled to begin in October.

In June, Yancoal entered a deal to acquire all the shares of Coal & Allied Industries from Rio Tinto for $US2.69 billion. Once completed, Yancoal will own interests in two additional operating, large-scale, low-cost coal mining operations in the Hunter Valley region of NSW, as well as export infrastructure.

Yancoal chief executive officer Reinhold Schmidt said the company continued to drive its long-term strategy for growth throughout the reporting period led by the proposed acquisition of Coal & Allied and the progression of the Moolarben Stage Two underground.

“As we work towards completing the acquisition, we remain focused on driving production gains and lowering costs across all existing operations, Mr Schmidt said.

“Yancoal remains well-positioned to maximise increasing thermal and metallurgical coal demand opportunities and price gains in the year ahead.

Yancoal remains on target for full year production of 12.75Mt to 13.2Mt of saleable coal.

Price gains achieved across the metallurgical coal market from the impact of the Queensland cyclone in the first half of the year had diminished by the end of the reporting period.

Thermal coal demand continued to be affected by China oversupply and the return of Indonesian supply.

Meanwhile, mining equipment, technology and services provider IMDEX Limited (ASX: IMD) announced revenue of $176.2 million for 2017 financial year, up 23 per cent on previous year.

Net profit after tax came in at $3.7 million compared to a loss of $56.2 million in the previous year, while  operating cash flow from continuing operations (excluding financing costs) was $20.7 million, up 107 per cent from $10 million in previous year.

At end of June, IMDEX has a strong balance sheet with net cash of $12.3 million. During the year, IMDEX divested AMC Oil & Gas in line with its strategy of focusing wholly on its minerals business.

Shares in Yancoal and IMDEX were trading at 13c and 85c respectively at 12pm AEST.