Australia’s Whitehaven hits 2023-24 coal guidance

Market: Coal, Coking coal
19/07/24

Australian coal producer Whitehaven met its production guidance for its New South Wales (NSW) mines in the 2023-24 fiscal year to 30 June, with managed run-of-mine (ROM) output from its newly acquired Queensland mines also meeting their guidance.

Saleable coal production at Whitehaven's NSW-based assets totalled 16.7mn t for 2023-24, up by 6pc on the 15.7mn t recorded last fiscal year and within its guidance for 2023-24 of 16mn-17.5mn t.

Saleable output from NSW for April-June was 4.3mn t, 11pc higher than January-March's 3.87mn t and above the year earlier figure of 3.83mn t.

Saleable production from Queensland totalled 4mn t, Whitehaven's first quarter since acquiring Australian-Japanese joint venture BHP Mitsubishi Alliance's 12mn t/yr Blackwater and 4mn t/yr Daunia coking and thermal coal mines on 2 April.

Queensland coal sales of 3.2mn t for the quarter reflected slippage into July-September because of now resolved, transition-related rail constraints from Daunia, Whitehaven said. A selldown of around 20pc of Blackwater to global steel producers is progressing, the firm reported, without providing further details.

The first production and sales have been achieved at the 10mn t/yr Vickery mine, while operations ceased during April at the 2.5mn t/yr ROM capacity Werris Creek mine.

Whitehaven's overall unaudited unit cost guidance, excluding royalties, for NSW in 2023-24 was A$114/t ($76/t), above the guidance range of A$103-113/t because of lower production at Narrabri and underlying inflation. Capital expenditure was A$380mn, below the 2023-24 guidance of A$400-480mn.

The Argus high-grade 6,000 kcal/kg NAR price averaged $133.46/t fob Newcastle and the 5,500 kcal/kg NAR coal price $88.47/t during April-June compared with $126.74/t and $93.85/t respectively for January-March.

Whitehaven's full-year results will be published on 22 August.

By Tom Major

Whitehaven results
	Apr-Jun '24	Jan-Mar '24	Apr-Jun '23
Volumes (mn t)

Managed coal production	8.3	3.9	3.8
Managed coal sales	7.3	3.8	3.9
Managed coal stocks	2.7	1.0	1.5
Coal sales revenue mix (%)
Metallurgical coal	59	13	5
Thermal coal	41	87	95
Prices achieved ($/t)
NSW average	137	136	177
Queensland average	180
Source: Whitehaven

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