Highlights
- Production Stability: Managed run-of-mine (ROM) production reached 9.7 million tonnes (Mt), matching the previous quarter.
- Stronger Sales: Equity coal sales surged 22% to 7.8Mt, with Queensland operations posting a 28% sales increase.
- Debt Reduction: Net debt cut by $200 million, bringing total debt down to $1 billion.
Whitehaven Coal Ltd (ASX:WHC) saw its share price rise on Wednesday after releasing its Q2 FY25 financial results, signaling a solid production quarter and strong sales growth. Shares initially surged to an intraday high of $6.33 before settling at $6.13, reflecting a 1.3% increase as investors processed the company’s numbers.
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.