Whitehaven (WHC) scrapes through at tough 2nd quarter report
Whitehaven Coal (WHC) unch; mixed day for Whitehaven as they reported on their 2nd quarter production efforts. We have seen Whitehaven climb into the report – although more so on the back of some better coal prices than any real market exuberance about their chances today given the downgrade the company put through late last year. Sales were up, but Whitehaven were also forced to step up purchases with sales exceeding production by around 15%.
Production was down substantially and has been softer for the early weeks of the new year compared to the same period’s last year, with drought, skills shortages and maintenance disrupting some operations. The Narrabri mine had a planned production unit relocation and Whitehaven used the opportunity to upgrade some of the gear. Maules Creek saw production down as a result of the impact from dust storms, as well as a skills shortage – Whitehaven were confident weather would have a lesser impact into the second half (coal miners turned weather reporters), while a new labour management plan that was implemented late in the quarter appears to have started to ease the pressure. Maules Creek has also reached its limits in certain areas giving Whitehaven the ability to commence in pit dumping which will lower run costs from here.
Whitehaven Coal (WHC) Chart
