Whitehaven sitting pretty on record coal prices
By Industry Queensland
Bumper coal prices see Whitehaven Coal tipping its strongest ever full year result, with a forecast EBITDA of about $3 billion for 2021/22.
Whitehaven achieved a record average coal price of $514/t over the past quarter and $325/t for the 2021/22 financial year.
The expected EBITDA of $3 billion compares to $200 million in the previous financial year.
“With demand for high quality coal outstripping global supply, Whitehaven remains well placed to
support energy security through transition and to deliver strong returns for shareholders,” managing director and chief executive officer Paul Flynn said.
“Coal prices set a new record during the June quarter and continue to be well supported.
“Stronger operational performance has enabled us to deliver our FY22 production and sales guidance in spite of a tight labour market and COVID-related absenteeism.
“Improved operational performance combined with record high coal price will underpin our strongest ever full year result.
Related: Yancoal Australia slashes debt as coal prices boom
“We expect to report a full-year EBITDA of approximately $3.0 billion, subject to final audit. A net cash position of $1.0 billion at 30 June, with ongoing strong cashflows, gives Whitehaven a continuing strong balance sheet with cash reserves to fund future growth and also return capital to shareholders through franked dividends and share buy-backs.”
Whitehaven Coal operate four mines in the Gunnedah Coal Basin of New South Wales.
It is advancing the proposed Winchester South open-cut metallurgical coal mine in Queensland’s Bowen Basin (site pictured below), which is expected to operate for more than 20 years with 15Mtpa ROM production.
The company reports that the project is continuings to progress through the Queensland Government’s Coordinated Project approval process.
It released an update in April to the resources and reserves statement for Winchester South, with the JORC reserves upgraded to 380Mt (from 350Mt) and JORC proved reserves upgraded to 270Mt (from 140Mt).
The project has JORC resources of 1,100Mt, inclusive of 670Mt of measured and indicated resources.
