23/08/2024 09:14

Whitehaven Coal (WHC) $7.65

Whitehaven’s result (covered yesterday here), accompanied by the announcement of Nippon Steel's purchase, was well received by the market, with the stock closing up +6.25% on Thursday. Whitehaven agreed to pay up to $US4.1 billion last year to acquire Blackwater and a second BHP mine called Daunia. Thursday’s sale of a stake in Blackwater resolves the question of how Whitehaven will fund next April’s $US500mn instalment, with a capital raise now unlikely. Whitehaven had $1.3 billion of net debt on June 30 before announcing Thursday’s $1.6 billion deal.

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22/08/2024 16:45

Whitehaven Coal (WHC) $7.68

WHC +6.25% reported a mixed FY24 result, with a NPAT miss (-4%) but a DPS 30% beat. However, Blackwater's 30% divestment was the standout, the $1.bn will help to shore up WHC’s balance sheet.

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23/07/2024 09:34

Whitehaven Coal Ltd (WHC) $7.99

WHC slipped 4% on Monday, retracing all of the gains enjoyed after  Anglo-American suspended operations at its Grosvenor plant in Queensland due to a fire – in hindsight, we may have been too greedy in the short-term. Their quarterly report on Friday attracted some selling, which accelerated on Monday as analysts tweaked their forecasts lower

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04/07/2024 09:26

Whitehaven Coal Ltd (WHC) $8.92

Coal stocks have exploded higher this week, with WHC already up over 16% after Anglo-American suspended operations at its Grosvenor plant in Queensland due to a fire. The company said it would take several months to return online, but many pundits think it will take longer if it ever does return to operation.

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02/07/2024 09:38

Whitehaven Coal (WHC) $8.13

Following the $US3.2bn purchase of BHP’s Blackwater and Daunia coal mines, WHC has strategically pivoted primarily to a coking/met coal producer, which will account for ~70% of its revenue, spread across NSW and QLD. Given supply constraints and a strong demand outlook driven by India, we are increasingly bullish on the met coal outlook.

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04/06/2024 09:16

Whitehaven Coal (WHC) $8.25

WHC was a dividend cash cow until it paid $US3.2bn for BHP’s Blackwater and Daunia coal mines. The move didn’t go down well with some investors who were getting used to their more than 10% fully-franked yield.  It is understandable in the short term as its yield plunged from over 10% to around 2%. However, we believe these good times could eventually return as WHC pays down debt and benefits from increased global energy demand – as we keep saying, remember AI. 

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28/05/2024 09:14

Whitehaven Coal (WHC) $7.82

WHC rallied +2% on Monday. After opening lower, the stock pushed higher all day, in line with our view that the stock is about to break out on the upside – a little bit of “Gut Feel” on the timing here. We believe coal miner WHC is well-positioned to benefit from a slower transition than many hope to clean energy, with its recent acquisition of BHP assets laying the foundations for it to again become a high-yielding cash cow in the years ahead.

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24/05/2024 09:21

Whitehaven Coal (WHC) $7.80

WHC has been tracking sideways over the last year, albeit in a volatile $2.80 range. Six weeks ago, UBS significantly upgraded the stock, increasing its price target to $8.70—so far, so good. Like UBS, we remain bullish towards metallurgical (Met) coal, helped by increasing demand from China and India, plus MM believes the transition to zero emissions will be a longer journey than many hope/think, which will benefit fossil fuels.

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19/04/2024 16:46

Whitehaven (WHC) $7.88

WHC unch: the coal stock chopped around today, surging on the open but trading as low as -1.78% during the session before steadying around par. The 3Q production update was mixed. Run of mine (ROM) at 4.4mt was down 13% on 2Q, though this was in line with expectations and is still tracking well ahead of FY23.

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18/04/2024 09:03

Whitehaven Coal Ltd (WHC) $7.80

Coal miner WHC rallied +2% on Wednesday, making a new 10-week high in the process. We have been almost stubbornly bullish on WHC over the last year, but its fortunes are turning, and a test of its 2024 high is starting to feel like a matter of time. Remember last week, influential broker UBS significantly upgraded the miner, increasing their price target from $6.30 to $8.70; it's not often you see an almost 40% upgrade without left-field news.

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