Why did Whitehaven’s (ASX:WHC) shares gain over 289% in a year?

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 Why did Whitehaven’s (ASX:WHC) shares gain over 289% in a year?
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Highlights: 

  • Whitehaven shares were trading marginally lower by 0.477% at 12:39 PM AEDT on ASX today. 
  • Currently, the company is focused on its share buyback program. 

Energy company Whitehaven Coal Limited (ASX:WHC) was spotted trading in the red zone on ASX during Tuesday’s trading session. The company’s share price stood at AU$9.385, down by 0.477% on ASX at 12:39 PM AEDT today (29 November).

Meanwhile, in the last 12 months the share price of Whitehaven has gone up over 289% on ASX. On a YTD basis, the company’s share price increased almost by 240% on ASX (as of 12:39 PM AEDT today).

How is the sector performing today? 

Today six out of 11 sectors under the benchmark ASX 200 index were trading higher today, including the index itself during afternoon trading hours. Whitehaven belongs to the Energy sector of the benchmark S&P/ASX 200 index, which was in red. Today, the S&P/ASX 200 Energy sector (INDEXASX:XEJ) was quoted at 11192.6 points, down by 0.951% or 107.5 points at 12:57 PM AEDT today.

Shares of some of the peer companies of Whitehaven, such as New Hope Corporation Limited were also showing a downward march on ASX today during the afternoon trading hours. However, on the contrary and Yancoal Australia Limited’s shares were trading on a stronger note today.

New Hope’s shares were trading 0.616% lower at AU$5.645 per share at 12:42 PM AEDT today. On the other hand, Yancoal’s shares were 1.277% higher at AU$5.550 per share at 12:45 PM AEDT.

Probably the volatility coal prices have driven the share price of these coal companies, despite the sector closing in red today.

Recent updates from Whitehaven 

Recently, Whitehaven announced its FY23 guidance, stating the fact that its open-cut mine productions were hampered due to the impacts of local floods and the La Niña phenomenon.

The company had already announced that its ROM production was lower in all three open-cut mines as operations got hampered due to rain and floods in September. Later, Whitehaven addressed that access road and haulage roads experienced impacts of floods. The wet weather continued in November as well, with soil moisture profiles, dams, and river systems at capacity in the Gunnedah Basin.

As a result, Whitehaven has moderated its expectation for FY23 ROM coal production from its open-cut mines due to the current and possible projected impacts of weather and ongoing labour shortage.

At present, the company is focused on its share buyback plan. Till now, Whitehaven has purchased 26,492,738 shares, and on the last day itself, the company bought 889,810 shares of its own.

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