Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi James, I would appreciate your view on Whitehaven Coal given its recent result. The market has continue to sell it off, despite being an inline result. Are there concerns with the result or just a case of it having run up in the months leading in to the result and some profit taking? Regards Andrew
Hi Andrew,
The main surprise in the WBC result was the higher medium-term cost outlook at its Queensland operations. While volumes, FY26 guidance, dividends and capital returns remain intact, Queensland costs have been revised materially higher, offsetting otherwise solid operational performance. As a result, earnings estimates beyond FY26 have been cut. We think the share price reaction is a combination of strong recent gains overlayed by the cost uptick in QLD – which has not previously been flagged by the company. We think the medium term outlook still stakes up, and the pullback to ~$7.80 brings with it another solid buying opportunity – it’s a stock we intend to hold.
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