Australian Coal Miner Sees Surge in Production and Optimism
Strong Quarter for Whitehaven Coal
Whitehaven Coal, Australia’s leading independent coal miner, has reported a remarkable 92.7% increase in its second-quarter production, driven by robust performances from its New South Wales and Queensland mines. This significant growth has instilled confidence in the company’s future prospects, particularly in the metallurgical coal market.
Metallurgical Coal Prices Set to Rise
The company anticipates that the long-term depletion of hard coking coal from Australian producers, combined with growing seaborne demand from India, will drive metallurgical coal prices higher. As a result, Whitehaven expects its metallurgical coal portfolio to benefit from these supply-constrained market dynamics.
Shares Soar on Positive News
Investors responded positively to the news, sending Whitehaven’s shares up by as much as 4.6%, marking the company’s best day in over two weeks. The benchmark stock index also rose by 0.7% at 0047 GMT.
New South Wales Operations Thrive
Whitehaven’s New South Wales operations, including the Maules Creek and Narrabri mines, recorded a 1.3% increase in managed run-of-mine (ROM) coal production. Meanwhile, the company’s Queensland mines, Blackwater and Daunia, which were acquired from BHP Group for $4.1 billion, saw a combined ROM coal production of 4.6 million metric tons for the December quarter.
Daunia Mine Performs Well
Despite some seasonal weather disruptions, the Daunia mine posted a strong sales volume of 1.5 million tons in the December quarter, up 34% sequentially. This was attributed to good coal availability, strong demand, and improved rail path availability on the Goonyella line.
Feasibility Studies Underway
Whitehaven continues to work on feasibility studies, including synergies with the Daunia coal mine. The company earned A$226 per ton of coal sold in the quarter, compared with an average realised price of A$216 per ton a year earlier.
Production Guidance on Track
Whitehaven’s managed ROM coal production for the December quarter was 9.7 million tons, slightly ahead of the Visible Alpha consensus estimate of 9.5 million tons. According to Chief Executive Paul Flynn, “We are on track to deliver firmly in the upper half of FY25 production and sales guidance, and at the low end of our full-year cost guidance range.”
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