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The Narrabri Mine. Source: Whitehaven Coal
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  • Whitehaven Coal (WHC) will use the uplift in thermal coal prices to pay down its debt and move into a net cash position in 2022
  • WHC is expecting significant cash generation on the back of the high prices, a welcome turnaround from the September quarter’s lower than average sale price
  • The mining stock recorded total managed coal sales of 4.6 million tonnes (Mt) over the September quarter and hit managed run-of-mine (ROM) production of 5.2Mt
  • The company’s FY22 production and sales guidance remains unchanged and WHC ended September with managed coal stocks of 3.2Mt
  • Shares in Whitehaven Coal are down 0.61 per cent to $3.28 each at 12:27 pm AEDT

Whitehaven Coal (WHC) will use the uplift in thermal coal prices to pay down its debt and move into a net cash position in 2022.

The company’s CEO Paul Flynn said on Thursday he was expecting significant cash generation on the back of the strong prices.

“During recent weeks, thermal coal prices reached record highs which we will see reflected in significant cash generation over the coming months,” Mr Flynn said.

“We continue to pay down our senior debt facility and we expect to fully repay the debt facility early in CY22 and be in a net cash position in the March 2022 quarter.”

It’s a welcome turnaround for the mining stock, which recorded a realised coal sales price of US$142 per tonne.

WHC recorded total managed coal sales of 4.6 million tonnes (Mt), 4.2Mt managed own coal sales, 3.9Mt total equity coal sales and 3.4Mt equity sales of own coal across the July to September period.

It also hit a managed run-of-mine (ROM) production of 5.2Mt, including 2.94Mt from Maules Creek and 1.53Mt from Narrabri.

Mr Flynn said he expected the Narrabri underground mine to improve its performance in the coming months.

“After a challenging period at Narrabri, we are readying for the longwall changeout ahead of a more productive second half,” he said.

At this stage, the company’s FY22 production and sales guidance remains unchanged and Whitehaven ended September with managed coal stocks of 3.2Mt.

Shares in Whitehaven Coal have dipped 0.61 per cent to $3.28 each at 12:27 pm AEDT.

WHC by the numbers
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