- At 3.23 PM AEDT, Whitehaven’s shares were trading at AU$8.98 per share, down 6.65%, on the ASX.
- This underperforms the ASX 200 index, which was up 0.28%, at 7,251.00 points, at 3.26 PM AEDT.
- Whitehaven’s MD and CEO Paul Flynn sold some shares in the company today.
Shares of energy company Whitehaven Coal Limited (ASX:WHC) were trading in the red today (24 November).
At 3.23 PM AEDT, the company's shares were trading at AU$8.98 per share, down 6.65%, on the ASX. This underperforms the ASX 200 index, which was 0.28% up, at 7,251.00 points, at 3.26 PM AEDT.
Why are Whitehaven's shares down today?
The shares of Whitehaven are trading lower today because the company's managing director (MD) and CEO has sold some shares in the company.
Paul Flynn (MD and CEO) sold 900,000 shares of the company for personal reasons, including to pay personal tax liabilities resulting from the issuance of shares under the company's equity incentive scheme, the company disclosed in an ASX filing.
Paul Flynn continues to have a sizable stake in the company even after the sale, ranking among its largest individual shareholders, with a holding of 1,070,451 shares, 449,884 vested performance rights, and 2,534,161 performance rights that are still pending vesting. The chairman approved the selling of the shares in accordance with the company's securities trading policy.
In a recent ASX filing, Whitehaven informed the market about La Nina's impact on the company's FY23 guidance. Production at its open-cut mining operations has been affected by localised and regional flooding effects brought on by the ongoing La Nina phenomena.
All three open cut mines' ROM production was lower than expected in September, as noted in the September quarterly production report, principally due to the disruption brought on by rain and flooding impacts. Access to roads and haulage roads continued to be affected, as mentioned during the company's annual general meeting in October. The Gunnedah Basin has seen persistently wet weather into November, with soil moisture profiles, dams, and river systems operating at full capacity.
Whitehaven has avoided on-site floods and has preserved production continuity by flying workers to work locations via helicopter to get around access problems brought on by flooding. Even though mine sequencing plans offer possibilities to increase quantities throughout the year, recent rains and flooding continue to hinder the ROM output, particularly at the open-cut mines at Maules Creek and Tarrawonga.
Whitehaven has lowered its forecast for the ROM coal output from its open-cut mines for FY23 due to persistent labour shortages and potential present and expected weather-related effects.