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The outlook for Whitehaven Coal (WHC)

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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The outlook for Whitehaven Coal (WHC)

Hi James, We have seen a turbulent market response to the WHC half yearly report hence would appreciate your interpretation of the result and hence outlook. Regards Jeff

Answer

Hi Jeff,

WHC reported its half-yearly report on Thursday and at the time of writing the stock had already traded in a 12.6% trading range, it feels like panic in both directions and we’re inclined to sit back and let the dust settle. The company delivered record operating earnings while declaring an unfranked 8c dividend putting  the stock finally back on a reasonable yield, with more to come in the 2H.

The scorecard showed NPAT coming in at $340.5mn while the board has also decided to undertake an on market buyback of 10% of the company capped at $400mn worth of stock – the current market cap is $3.15bn making it very meaningful purchase.

MM remains long WHC looking for a test of the $4 region.

 

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Whitehaven Coal (WHC)
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