The Whitehaven Coal Ltd (ASX: WHC) share price is well in the green today.
Whitehaven shares are rising 6.33% and are currently trading at $10.67. For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.48%
Let's take a look at why this ASX coal share is having such a good day.
Image source: Getty Images
What's going on
Whitehaven is not the only ASX coal share lifting today. The New Hope Corporation Limited (ASX: NHC) share price is up 7.4%, while Yancoal Australia Ltd (ASX: YAL) shares are 5.52% ahead.
The coal price is up 0.24% to US$391.95 a tonne, Trading Economics data shows. Coal prices are high amid tight supplies and increased global demand amid the European energy crisis.
News on the coal price from Yancoal last night may also be providing ASX coal shares, including Whitehaven, with a boost. "Record high coal price" was a key driver in Yancoal's financial performance. Yancoal's average realised price of coal surged 211% to $364 a tonne.
On Wednesday, Whitehaven delivered quarterly results. Production in the September quarter fell 37% compared to the June quarter. However, coal prices hit another record during the quarter.
Whitehaven achieved a record average coal price of $581 a tonne.
Commenting on the coal price, CEO Paul Flynn said:
With demand for high-quality coal continuing to outstrip global supply, coal prices set another record in the September quarter and continue to be well supported.
Whitehaven is predicting it will produce 20Mt to 22Mt in FY23 and achieve 17.5Mt to 18.5Mt of managed coal sales.
Macquarie has recently placed a $12 price target on Whitehaven shares. Analysts are also tipping Whitehaven to deliver dividends of $1.07 per share in FY 2023 and $1.25 a share in FY 2024.
Whitehaven Coal share price snapshot
The Whitehaven Coal share price has soared 310% in the year to date and 260% in the past 12 months.
For perspective, the ASX 200 has fallen nearly 10% in the past year.
Whitehaven has a market capitalisation of $9.3 billion based on the current share price.
