Whitehaven (ASX:WHC) slashes output forecast, shares drop on ASX

Be the First to Comment Read

Whitehaven (ASX:WHC) slashes output forecast, shares drop on ASX

ASX, WHC, coal mining
Image source: © Darrensharvey | Megapixl.com

Highlights

  • Whitehaven Coal Limited shares closed considerably lower today. The shares shed off more than 10%.
  • The company has lowered coal production to 19-20.5 Mt from 20-21.5 Mt.
  • Heavy rain and labour shortage has impacted December quarter and FY22 guidance hugely, the company reported.

The share price of coal mining and exploration company, Whitehaven Coal Limited (ASX:WHC) closed 6.102% down at AU$2.770 per share on Friday. The company has released its December quarterly report and FY22 guidance.

December quarter update

Unusual heavy rains that caused floods in the east side of Australia resulted in the low of road access to the mines for over two weeks. The December quarter was also affected significantly by the Covid-19 as it resulted in a labour shortage.

  • The coal pricing averaged for the December quarter is AU$211 per tonne.
  • 3Mt managed run of time (ROM) production is recorded.
  • 0Mt managed saleable cold production is reported.
  • The total managed coal sales stood at 4.0Mt, total equity coal sales at 3.3Mt, managed own coal sales at 3.5Mt and equity sales of own coal at 2.9Mt.
  • As of 31 December 2021, the managed coal stocks stand at 2.1Mt.
  • The Narrabri Underground Longwall Mine was relocated from 109 to 110 panels successfully.
  • By February 2022, the company expects to repay its senior debt facility, and by March 2022, the company will be in a net cash position.

FY22 guidance

The production targets for the financial year 2022 have been cut down by 5%.

  • Managed run of mine (ROM) production has been cut down to 19 to 20.5 Mt from 20-21.5 Mt in previous guidance.
  • The managed coal sales have been brought down to 17.2 – 17.8 Mt from 18 – 18.6 Mt in previous sFY22 guidance.
  • The cost of coal has also been updated in the FY22 guidance, with the cost of coal increasing to AU$79 – AU$84 per tonne, from AU$72-AU$76 per tonne. The cost guidance includes an increase in diesel prices, increased demurrage costs, workforce absenteeism and volumetric impacts of flooding.

Paul Flynn, CEO of Whitehaven, commented,

In February 2022, Whitehaven will release its HYFY22 results, and in August 2022, full-year FY22 results will be released.

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK