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Highlights
- Whitehaven Coal reports lower Q3 production and sales.
- Weather impacts operations in Queensland and Narrabri.
- Company reaffirms full-year production and cost targets.
Whitehaven Coal (ASX:WHC) experienced a dip in both production and sales during the March quarter, largely due to seasonal weather challenges affecting its Queensland operations and slower progress at the Narrabri mine. Despite these setbacks, the company remains optimistic about achieving its full-year targets.
For the third quarter, managed run-of-mine (ROM) production slipped by 5% compared to the previous quarter, reaching 9.2 million tonnes. Equity sales of produced coal recorded a steeper decline, falling 20% to 6.3 million tonnes. The decrease was attributed to adverse seasonal conditions, which disrupted mining activities and slowed output.
Operations in Queensland, where heavy rainfall is typical during the season, were particularly impacted. Additionally, Narrabri, a significant site for Whitehaven Coal (WHC), faced slower-than-expected development progress, further influencing the overall output.
Despite these quarterly challenges, Whitehaven Coal (WHC) remains confident in its year-to-date performance. The company emphasized that both Queensland and New South Wales production and sales volumes are tracking well and remain aligned with expectations. Management indicated that the company is on course to achieve production and sales figures toward the upper end of its FY25 guidance range.
Cost management has also been a positive focus. Whitehaven Coal (WHC) reiterated that it is likely to meet the lower end of its full-year cost guidance range. This reflects effective operational efficiencies and disciplined cost control measures across its mining operations, which could bolster profitability despite softer quarterly sales.
Looking ahead, the miner continues to navigate external challenges while maintaining strategic progress. Seasonal weather patterns are an inherent part of the mining landscape, and Whitehaven Coal’s (WHC) ability to stay aligned with its full-year objectives highlights operational resilience. Investors and market watchers will be keen to monitor how production levels evolve as the company moves into the final quarter of FY25.
Whitehaven Coal (WHC) remains a significant player in the Australian coal sector, balancing operational challenges with a steady focus on meeting its long-term production and financial goals.
