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. Sales were lower than expected though, down 16% on the prior quarter though guidance was left unchanged. The positives came from the recently acquired Daunia & Blackwater with WHC expecting 4.5-5Mt of coal production in the last quarter of the year, slightly ahead of market expectations. We continue to see upside risk to the coal price, with the Middle East conflict also likely to support energy prices.
MM is bullish WHC and long in the Active Growth Portfolio
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