The Whitehaven Coal Ltd (ASX: WHC) share price is on the move on Friday.
At the time of writing, the coal miner's shares are up 5% to $9.38.
This follows the release of the company's quarterly update, which revealed another three months of strong cash generation.
Whitehaven share price charges higher on record half
For the three months ended 31 December, Whitehaven Coal delivered managed run-of-mine (ROM) production of 4.8Mt, up 21% on the previous quarter and 50% on prior corresponding period.
This underpinned managed sales of produced coal of 4.3Mt, up 16% on the September quarter and 21% on the prior corresponding period.
And while prices softened a touch to an average of A$527 per tonne for the quarter, down from A$581 per tonne in the previous quarter, this was still more than double what it was commanding a year earlier. As a result, the company delivered a record average first half coal price of A$552 per tonne.
And with total managed sales coming in at 8Mt for the half, management revealed that the company expects to post record half year EBITDA of $2.6 billion. This will be more than quadruple the $0.6 billion reported in the prior corresponding period.
Combined with its strong cash generation, the company finished the half with a net cash position of $2.5 billion.
Management commentary
Whitehaven Coal's CEO, Paul Flynn, was pleased with the company's performance given the wet weather. He said:
During the December quarter, we maintained strong operational performance at our Narrabri underground mine which helped offset the impact of continued wet weather on volumes from our open cut mines.
Strong ongoing demand for high CV coal, coupled with supply constraints, underpinned high prices, a solid December quarter and an exceptional first half result. We generated $2.5 billion of cash from operations in the half year, including $1.0 billion in the December quarter. At the end of December, we held a net cash position of $2.5 billion.
The Company is performing well and delivering strong returns for our shareholders including buying back $593 million of shares in the first half of FY23. Energy security remains a key imperative for our customers throughout Asia, and we are continuing to supply high quality coal through the energy transition for the benefit of all stakeholders.
Outlook
No change has been made to the company's full year guidance.
Management advised that it remains on track to deliver within the range of its overall production, sales, and cost guidance for FY 2023.
This includes managed ROM coal production of 19 to 20.4Mt, managed coal sales of 16.5Mt to 18Mt, and unit costs of $95 to $102 per tonne.