- Whitehaven Coal (WHC) has released its activities report for the September quarter, showing total managed coal sales were up 13 per cent year-on-year
- The company’s run-of-mine (ROM) production for Q1 FY21 totalled 4.5 million tonnes, up 4 per cent compared to the same time in 2019
- At the end of the September quarter, Whitehaven had refined its FY21 guidance unit cost range to $69/t to $72/t
- The change in unit costs comes as the wider coal market began rallying in September, after suffering COVID-19 related price drops
- WHC has also advised shareholders the company is on track to meet its FY21 guidance for managed coal sales
- Shares in Whitehaven Coal are trading up 13.7 per cent at $1.08
Coal producer Whitehaven Coal (WHC) has released its activities report for the September quarter, showing total managed coal sales were up 13 per cent year-on-year.
Q1 FY21 saw the company record strong sales, with total managed coal sales totalling 6 million tones (Mt) — compared to 5.3 Mt in the same period in 2019.
Whitehaven’s managed own coal sales were up 15 per cent year-on-year, while total equity coal sales increased by 13 per cent and equity sales of own WHC coal were up 16 per cent.
Along with coal sales increases, the producer also recorded a managed run-of-mine (ROM) production of 4.5 Mt for the September quarter, a 4 per cent increase compared to Q1 FY19.
Throughout the September period, the global price of coal hovered around US$52/t (Around A$72.9/t) — a historic low brought on by COVID-19 and China quota restrictions — with Whitehaven also realising that price for its own sales of thermal coal.
Speaking on the results, Whitehaven Coal CEO and Managing Director Paul Flynn said he was pleased to see a return in demand.
“Notwithstanding COVID-19 headwinds, the September quarter saw strong sales in response to demand for our product from customers in Asia,” he said.
“Operationally, we have continued the June quarters’ momentum by delivering on-plan mining performance of coal and overburden across all operations laying a solid foundation to much improved operational results,” Paul added.
At the end of the quarter, Whitehaven said its managed coal stocks sat at 1.8 Mt.
It also announced it had revised its FY21 guidance unit cost range to $69/t to $72/t, slightly down from the $69/t to $74/t guidance released in Whitehaven’s annual report.
The company said the change comes as the wider coal market began rallying in September, after suffering price drops.
In addition, Whitehaven is on track to meet FY21 managed coal sales, excluding purchased coal, of 18.5 Mt to 20 Mt.
Shares in Whitehaven Coal have jumped up 13.7 per cent at $1.08 per share at 2:42 pm AEDT.