20/10/2023 09:22

Whitehaven Coal (WHC) $7.48

At midday on Thursday, the AFR ran a story that Jefferies trading desk had sold a parcel of 21mn WHC shares, or $157.5mn, post the purchase of the Daunia & Blackwater met coal mines in QLD from BHP Mitsubishi Alliance (BMA) – about 2.5% of the company. London-based hedge fund Bell Rock is touted as the seller after the miner ignored its wishes and went ahead with its growth strategy as opposed to ongoing dividends and buy-backs preferred by the activist investor. Either way, we felt the market absorbed the sale in a very encouraging fashion.

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18/10/2023 16:43

Whitehaven Coal (WHC) $7.57

WHC +11.49%: Announced the purchase of the Daunia & Blackwater met coal mines in QLD from BHP Mitsubishi Alliance (BMA) with some important points to make on this large, and very strategic acquisition, which we think will prove a good one.

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17/10/2023 09:13

Whitehaven Coal (WHC) v New Hope (NHC)

Two ASX coal companies with very different fortunes through 2023, WHC has fallen -28% while NHC has risen +2%, and that trend continued on Monday with NHC outperforming by +0,4% although both closed higher. The huge difference in relative performance has been driven by management-flagged direction over the coming years.

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18/09/2023 16:53

Whitehaven Coal (WHC) $6.61

WHC -0.9%: The coal miner has today confirmed what has been suspected since suspending the share buy-back at their recent results, that they are in the running to acquire BHP’s major Daunia and Blackwater coal mines in Queensland.

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12/09/2023 09:24

South32 Ltd (S32) v Whitehaven Coal Ltd (WHC)

Over recent weeks MM has been contemplating switching out of SFR into S32 on valuation grounds but we’ve held fire with over 20% of S32’s revenue coming from coal which is illustrated by its strong correlation with Whitehaven Coal (WHC).

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24/08/2023 17:09

Whitehaven Coal (WHC) $6.92

WHC -5.08%: A strong year for the coal producer with underlying revenue of $6,06bn which was broadly inline with consensus, EBITDA of $3,99bn (v consensus $4bn) & an underlying net profit after tax (NPAT) of $2.7bn which was inline with expectations.

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11/08/2023 09:23

Whitehaven Coal Ltd (WHC) $7.45

We own WHC in our Flagship Growth Portfolio and highly correlated New Hope (NHC) in our Active Income Portfolio hence calling a holding a “dog” may sound incongruous to both our portfolios and way of thinking but we cannot shirk away from the facts.

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27/07/2023 17:05

Coal Stocks

The sector was hit today with Whitehaven (WHC) -5.85%, New Hope (NHC) -5.65% & Bowen Coking Coal (BCB) -10.34% all suffering large declines. Media reports this morning surfaced that the NSW government is looking to revamp coal royalties ahead of the state budget in September.

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25/07/2023 09:16

Is the lithium bubble bursting as prices become more transparent?

Last week saw a new Lithium Futures contract start trading in China but it was a rocky start for the essential ingredient for current-style electric-vehicle batteries. Contracts for January’24 delivery plunged below 214,150 Yuan on Friday and while paring early losses they still closed -13% lower as the market flags lower prices during that time frame.

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20/07/2023 09:30

Whitehaven Coal (WHC) $7.00

WHC is still down -26% in 2023 but it has at least bounced ~25% from its June low as coal prices stabilised under $US150/MT. We liked the lack of nasty surprises in their quarterly production update this week i.e. after returning A$1.6bn in FY23, net cash ending FY23 is strong at A$2.7bn which will deliver ~A$500m payouts in FY24E and inorganic/organic growth opportunities with some of BHP’s assets up for sale i.e. if the world wasn’t committed to a green future the stock would be trading above $10.

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