WHC has bounced over 30% from its April low although we are conscious that we saw two such a moves in 2024, both of which ultimately failed. Importantly the company delivered a strong March quarter, in April, tracking toward full-year guidance for FY25. It was encouraging to recently see Australian Super invest in WHC a move the superannuation giant insists is consistent with its commitment to net-zero emissions by 2050, although not everyone agrees on this front. Additional support for the share price is also coming from its $72 million buyback, which will run over six months, which started in March.
WHC has positioned itself perfectly for when, or if, the coal price recovers, having evolved the business to primarily focus on coking coal mining after acquiring Daunia and Blackwater, i.e., it has gone long into weakness. Additionally, patient investors can expect to receive a ~5% fully franked yield this year, even with a weak coal price, demonstrating how the yield levers can be adjusted once the coal price begins to improve.
- We are initially targeting a retest of the $7 area through 2025: MM holds WHC in its Active Growth Portfolio.
