Whitehaven Coal Shares Rise on Wednesday, Here's Why.

January 29, 2025 01:13 PM AEDT | By Team Kalkine Media

Whitehaven Coal Shares Rise on Wednesday, Here's Why. — Image source: shutterstock

A Solid Quarter for Whitehaven

The coal miner delivered 9.7Mt in ROM production, maintaining output levels from the prior quarter. Equity sales of produced coal jumped 22% to 7.8Mt, underpinned by strong demand and increased operational efficiencies.

Whitehaven’s Queensland operations saw 28% sales growth, reaching 4.6Mt, though production from its Queensland mines dropped 14% quarter-on-quarter. Meanwhile, in New South Wales, ROM production increased 17% to 5.1Mt, leading to a 15% rise in sales volumes.

The company reported strong average coal prices, with its Queensland coal selling at $237 per tonne and NSW coal at A$211 per tonne. Encouragingly, unit production costs remained at the lower end of FY25 guidance, boosting profitability.

Debt Reduction and Future Outlook

Whitehaven made significant strides in debt reduction, lowering its net debt by $200 million to $1 billion by the end of December 2024. Additionally, the company expects to receive US$1.08 billion in proceeds from a 30% sell-down of its Blackwater coal mine, with the first payment scheduled for July 2025.

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