Whitehaven Coal has cited solid production at open cut mines and resilient coal pricing as the key to its success during the first half of the 2023–24 financial year (H1 FY24).
The major miner recorded a run-of-mine (ROM) managed production of 10.3 million tonnes (Mt), a 1.5Mt increase from H1 FY23.
“In the first half of FY24, high-CV thermal coal prices moderated but remained resilient, as energy security is a priority for power utilities globally,” Whitehaven managing director and chief executive officer Paul Flynn said. “Whitehaven achieved a realised average price of $220 per tonne in the half year.
“The open cut operations performed consistently well in the half year with good mining conditions and an easing of labour shortages. Our Narrabri underground mine experienced adverse geological conditions, which impacted productivity.”
Whitehaven also saw a 16 per cent improvement in safety performance with a total recordable injury frequency rate of 3.96 for the six months ending December 31 2023.
The company finished the half-year with $1.6 billion in revenue and $523.2 in cash generated from its operations.
“The program of work to complete the acquisition of Daunia and Blackwater mines and transform Whitehaven into a metallurgical coal business is progressing well,” Flynn said.
“People across our existing operations and the new businesses are highly motivated as integration planning continues and milestones are met.
“The $US1.1 billion five-year credit facility, together with US dollar cash on the balance sheet, will be used to fund the upfront payment for the acquisition.
“Ongoing cash flows being generated by the business will provide additional liquidity. Subject to receiving required regulatory and merger control approvals, we expect completion in early April 2024.”
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