Whitehaven Coal has announced a robust performance for the December quarter, surpassing market expectations. Morgans equity analyst Christopher Creech highlighted the company’s impressive results in a recent note. Whitehaven Coal is an Australian coal producer focused on metallurgical and thermal coal. The company operates mines in New South Wales and Queensland.
The company’s managed run of mine (ROM) production reached 11 million tonnes, a 21 per cent increase compared to the September quarter. In Queensland, ROM output saw a 20 per cent rise, reaching 5.6 million tonnes, significantly exceeding the consensus estimate of 4.82 million tonnes. This surge in production underscores the company’s operational effectiveness and its ability to capitalise on favourable market conditions.
Creech noted the potential for coal prices to rebound significantly above current consensus estimates. He emphasised that long-term demand, coupled with decreasing supply for both metallurgical and thermal coal, will likely bolster prices in the long run. This positive outlook is underpinned by global energy needs and infrastructure development, which continue to drive demand for coal.
Given Whitehaven’s production capabilities, strong cash flow, and strategic emphasis on operational efficiency and cost management, Morgans maintains a positive outlook on the company. Creech stated that Whitehaven Coal remains their preferred investment choice among coal producers, citing its advantageous position in a market poised for potential price increases.
