A six per cent decrease in run-of-mine (ROM) production and a decreased average coal price have contributed to Whitehaven Coal’s mixed December 2023 quarter.
The Australian coal miner’s December quarter ROM production equalled five million tonnes (Mt), a notable 300,000t decrease from the September quarter, and the company’s average coal price for the December quarter was $216/t, a $8 decrease from the September quarter.
Despite these declines, the company’s December quarter total equity sales of produced coal equalled 3.7Mt, a 21 increase from the previous quarter.
Whitehaven also saw a 20 per cent increase in managed sales of produced coal by producing 4.6Mt.
“Maules Creek and the Gunnedah open cut mines delivered solid operational performances while ROM production at Narrabri was impacted by geological challenges in the current longwall and equipment reliability,” Whitehaven Coal managing director and chief executive officer Paul Flynn said.
“Overall ROM production and sales guidance for the 2023–24 financial year (FY24) remains unchanged. However, production and sales mix are expected to reflect the stronger performance at the open cut mines and lower volumes from Narrabri.”
The December quarter also saw Whitehaven acquire BHP’s Daunia and Blackwater metallurgical coal mines for up to $US4.1 billion.
“An average realised price of $216/t was achieved for the quarter, with thermal coal sales realising a premium of five per cent to the gC NEWC index of $US135/t,” Flynn said.
“While high CV thermal coal prices remain resilient in the range of around $US120–$150/t, HCC metallurgical coal prices have strengthened to (about) $US300–$350/t, which will deliver benefits for Whitehaven post completion of our acquisition.
“The $US1.1 billion five-year credit facility together with cash held of $1.6 billion and ongoing cash generation underpin the completion of the announced acquisition of Daunia and Blackwater mines expected in early April 2024.”
Whitehaven held a net cash position of $1.5 billion as of December 31 2023, after it paid a $833 million tax payment in December for FY23 and a $US100 million cash deposit to acquire the Daunia and Blackwater mines.
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