WHC +4.04%: Edged higher today following commentary at their AGM with dividends to resume in the “near future”. Historic highs in coal prices is generating cash at a rapid rate which is being used to pay down debt, however that will be done soon opening the door for capital management, sooner than the majority in the market were expecting (not MM, we have been across this for some time). We’ve heard a lot from the company in recent times so not a lot of new info today however worth while reiterating their focus into 2022:
- Debt reduction and capital management/shareholder returns
- Narrabri (underground) – Optimise transition to shallower ground in FY23 and Stage 3 extension approvals = lower costs
- Maules Creek (Surface mine) – Optimise fleet productivity = lower costs
MM remains bullish WHC
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