Whitehaven (ASX:WHC) lowers production guidance, shares fall

November 08, 2022 05:27 PM PST | By Sonal Goyal

Whitehaven (ASX:WHC) lowers production guidance, shares fall — Image source: © Awcnz62 | Megapixl.com

Whitehaven reduces production guidance due to flooding impact

In the September quarterly production report, Whitehaven had highlighted that run-on-mines (ROM) production during the period was lower than the expectations across its three open-cut mines -- Narrabri, Maules Creek and Gunnedah. The company cited flooding and rain impacts as the cause of the disruption.

During the company AGM (annual general meeting) in October, the company mentioned that haulage roads and access roads were affected. Today, the Australia-based organisation shared that wet weather continued this month (November) with soil moisture profiles, river systems and dams at capacity in the Gunnedah basin.

According to the ASX announcement, the company did not witness any on-site flooding.

What is the updated production guidance for FY23?

Considering the current and projected effect of ongoing labour constraints and weather conditions, the company has moderated estimates for ROM coal production in FY23.

The managed ROM coal production guidance has been reduced from 20 – 22 to 19 – 20.4 million tonnes.
The company expects managed coal sales of 16.5-18 million tonnes. Earlier the expected range was 17.5-18.5 million tonnes.
The equity coal sales expectation has been reduced from 14.1-14.9 million tonnes to 13.1-14.4 million tonnes.

The unit cost of coal expectation has been updated to AU$95-102 per tonne, from AU$89-96 per tonne.

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