Quarterly production report kicks Whitehaven (WHC) into gear

Stock

Whitehaven Coal (WHC) $3.85 as at 11/07/2019

Event

Whitehaven Coal has kicked of the quarterly reporting period for the miners today releasing their June quarter production report. The stock has rallied currently on its best run since April.

The production report provides a positive read through for their full year results due out next month with the final quarter’s contribution pushing the year’s output above guidance for raw coal production numbers. Run-of-mine (ROM) production came in at 23.2Mt, above the upper level of guidance at 22.8Mt.

The result was driven by a big beat at the Narrabri facility, however there are signs that this may not flow through to a big profit beat at the result. Saleable coal production, the finished product which WHC can then offload, missed guidance by around 5% at 19.8Mt.

On the pricing side of things, Whitehaven managed to negotiate a 5% premium to the index for their thermal coal product in the quarter. Prices on the metallurgical side came in even better, with a 12% beat to the spot over the June quarter.

Whitehaven Coal (WHC) Chart

Whitehaven Coal (WHC) Chart

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