Whitehaven Coal's fourth-quarter production climbs, price pressures in focus
Australia's Whitehaven Coal reported an almost 9% rise in production for the fourth quarter on Friday on the back of a strong performance at its mines, while flagging price pressures due to an uncertain trade and demand environment.
Its Queensland operations, which include the Blackwater and Daunia mines, were the biggest contributors, logging a more than 17% increase in managed run-of-mine (ROM) coal production to 5.6-million metric tons.
Operations in New South Wales - which consist of the Maules Creek, Narrabri and Gunnedah open-cut mines - also delivered an uptick in overall production.
Whitehaven reported total managed ROM coal production of 10.6 million tons for the three months ended June 30, up from 9.7-million tons a year ago.
Shares of Australia's top independent coal producer were trading about 1% higher by 00:37 GMT, outperforming the domestic mining index .AXMM which fell over 1%.
The company received A$189 ($124.61) per ton of coal sold during the quarter, compared to an average realised price of A$238 per ton a year earlier.
Prices were hurt by trade uncertainties including US tariffs, discounted Chinese steel exports and re-traded volumes in the seaborne metallurgical coal market, the miner said.
However, Whitehaven said its cost initiative measures helped to offset some of the impact of falling prices.
"Whitehaven is managing well through the current soft pricing environment," CEO Paul Flynn said in a statement.
"Our focus on cost management is reflected in the estimated A$139/t cost of coal for FY25, which is better than our cost guidance for the year."
The miner's per unit cost of coal for the year was A$139 per ton, and capital expenditure was A$390-million, both better than their previously disclosed guidance of A$140 to A$155 per ton and A$440 million to A$550-million, respectively.
"We expect focus to be on continued underperformance on realised price, and the success of cost-out initiatives," analysts at Jefferies said in a note.
Whitehaven also said it will include a refreshed capital allocation framework in its 2025 financial results due for release on August 21.
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