The Whitehaven Coal (ASX:WHC) share price lifts after quarterly update

Shares in the Australian coal miner are climbing on the back of the company's announcement

| More on:
A coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other hand

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Whitehaven Coal Ltd (ASX: WHC) share price is in the green today after the company released its quarterly report this morning.

Currently Whitehaven shares are exchanging hands for $2.04 a piece, 3.03% up on the day.

Let's take a closer look at the Australian coal miner's results in closer detail.

Whitehaven's share price jumps despite output setbacks

Whitehaven shares lifted after the earnings release, despite reporting its fourth-quarter saleable coal production had reduced by 39%.

Today's results also exhibit a 7% decline in saleable coal production from the same time last year, coming in at 3.8 million tonnes (Mt).

The company also detailed that run-of-mine coal output was 20.56 Mt, flat to 20.60 Mt 12 months ago.

Explaining the results, Whitehaven claimed it had faced challenges at its Narrabri mine in New South Wales this year. It stated the Narrabri operation has been undergoing longwall equipment repairs due to the surrounding environment.

The company has experienced unscheduled downtime as a result of the repairs, hurting overall production.

Whitehaven managing directory and chief executive Paul Flynn said in the report:

Unfortunately difficult geological conditions persisted at Narrabri through the second half and, having now navigated through this area, we are focused on finishing the balance of the panel expeditiously and getting to the change out scheduled for Q2 of FY22.

Surging coal prices

Although coal prices hit new highs of US$135 per tonne this week, in its report, Whitehaven stated it had received a discounted price of US$94 a tonne.

Nonetheless, the company is adamant it will realise the benefits of these price hikes later on in the year.

Speaking on this topic, Flynn mentions in the report:

Prices for high-CV thermal are at 10-year highs, and we will begin to see this materialise into strong free cash flow over the coming months.

Whitehaven share price snapshot

The Whitehaven share price has climbed 23% this year to date, extending the last 12 month's gain of 35%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of 11% this year and 21% over the last year.

At the time of writing, Whitehaven has a market capitalisation of $2 billion.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A young man wearing glasses writes down his stock picks in his living room.
Opinions

2 amazing ASX shares I wish I'd bought earlier

I think these stocks are performing incredibly well.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Share Market News

$20,000 invested in CBA and these ASX 200 shares 5 years ago is worth

Did these shares deliver the goods for investors? Let's find out.

Read more »

a business person checks his mobile phone outside a Wall Street office with an American flag and other business people in the background.
Share Market News

Is the 'sell America' trade back?

Institutional investors appear to be at odds with retail investors.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »

Six smiling office colleagues stand in a row and look at the camera.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why ANZ, Clarity, IGO, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher

These shares are having a good finish to the week. But why?

Read more »

woman holding 'hiring' sign in shop
Broker Notes

How much upside does Macquarie tip for Seek shares?

The broker recently reviewed Australian job ad volumes for May.

Read more »